M/s. Gariahat Market Byabasayee Cooperative Credit Society Ltd. v. ITO, Ward-30(1), Kolkata

Parties Involved

Facts Summary

The assessee, a cooperative credit society, filed an income tax return declaring total income at 'NIL' after claiming a deduction under section 80P of the Income Tax Act. The case was selected for scrutiny regarding cash deposits during the demonetization period. The Assessing Officer asked for a cash flow statement and bifurcation of cash deposits during the demonetization period, but the assessee did not comply. The Assessing Officer treated the cash deposit as unexplained cash credit under section 68 of the Act. The assessee appealed against the order of the Commissioner of Income-tax (Appeals) who dismissed the appeal on the ground that there was no compliance from the assessee. The assessee argued that the order of the Commissioner of Income-tax (Appeals) was arbitrary and illegal.…

Legal Issues

• 1. Whether the action of the Commissioner of Income-tax (Appeals) to confirm the addition made by the Assessing Officer of Rs. 6,00,000/- as unexplained cash credit under section 68 of the Act is arbitrary, excessive and illegal.
• 2. Whether the action of the Assessing Officer in not allowing deduction under section 80P of the Act to the extent of Rs. 6,99,944/- as claimed in the return and confirmed by the Commissioner of Income-tax (Appeals) is illegal, arbitrary and excessive.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Rahul Bansal (HUF) vs. ITO, Ward 59 (6)

  Delhi bench

• Mundukhola Baksagarh SKUS Ltd. Vs. ITO, Ward-24

  Kolkata Bench benchAY 2017-18Allowed

• Sundar Ram Shetty Nagar Credit Souharda Sahakari Limited Vs. The Income Tax Officer

  SMC Bench, Bangalore benchAY 2017-18 & 2018-19Partly Allowed

• M/s Coolhut Marketing Pvt. Ltd. vs. Income Tax Officer-6(1), Kolkata

  Kolkata bench

• ITO, Delhi vs. Shann Jewellers

  Delhi Bench ‘A’ benchAY 2017-18Dismissed

• The Income Tax Officer, Ward – 1 & TPS, Bagalkot Vs. M/s. Jyoti Co-op. Credit Society Ltd.

  'C' Bench : Bangalore benchAY 2017-18Dismissed