M/s. H D M C Employees Co-operative Credit Society Ltd. Vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, a co-operative society, earned various incomes during the assessment year. The Assessing Officer (AO) disallowed certain deductions and treated cash deposits made during the demonetisation period as unexplained cash credit under Section 68 of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), arguing that the deposits were from members and not unexplained cash credit. The CIT(A) dismissed the appeal ex-parte as the assessee did not file any submissions. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), presenting arguments and precedents to support their case.…

Legal Issues

• 1. Whether the order of the National Faceless Appeal Center is prejudicial to the interests of the appellant.
• 2. Whether the invoking of provisions of Section 68 of the Act and making an addition of Rs. 42,57,000 is erroneous.
• 3. Whether the appellant is a mere conduit for cash deposited by the members.
• 4. Whether the addition of proportionate interest from Nationalized Banks to the extent of Rs. 1,12,763 is correct.
• 5. Whether income from house property assessed at Rs.4,76,742 is eligible for deduction u/s 80(8)(2)(a)(i).
• 6. Whether business income assessed at Rs.86,400 is eligible for deduction u/s 80(P)(a)(i).

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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