M/s. Mauli Mahila Nagari Sahakari Path Sanstha Limited vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, M/s. Mauli Mahila Nagari Sahakari Path Sanstha Limited, deposited cash totaling Rs.13,61,080/- in its bank accounts during the demonetization period but failed to file its income tax return for the Assessment Year 2017-18. Despite notices, the assessee did not respond to the detail questionnaire issued by the Income Tax Department. The Assessing Officer completed the assessment under section 144 of the Income Tax Act, 1961, treating Rs.12,47,000/- of the deposited cash as unexplained money under section 69A of the Act. The Commissioner of Income Tax (Appeals) upheld the addition. The assessee appealed against this order, arguing that the deposited cash was sourced from its members and properly recorded in its books of accounts.…

Legal Issues

• 1. Whether the addition of Rs.12,47,000/- made by the Assessing Officer under section 69A of the Act is correct.
• 2. Whether the assessment completed under section 144 of the Act is correct.
• 3. Whether the addition of Rs.12,47,000/- made by the Assessing Officer is incorrect since the appellant has duly explained and substantiated the nature and source of the funds received and deposited in the bank.
• 4. Whether the Commissioner of Income Tax (Appeals) is not justified in arbitrarily upholding the addition so made by the Assessing Officer.
• 5. Whether the Assessment Proceedings so completed are not in accordance with the provisions of the Act since notice under section 143(2) of the Act was not issued before passing the Assessment Order.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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• ITA No.4637/Del/2024