M/s. Primary Co-operative Agriculture and Rural Development Bank Ltd. vs. The Assistant Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, a Primary Co-operative Agriculture Rural Development Bank, filed its return of income for the Assessment Year 2017-18 and claimed a loss. The case was selected under complete scrutiny, and the Assessing Officer treated deposits made in specified bank notes (SBNs) as unexplained cash credit under section 68 of the Income Tax Act. The assessee appealed against this order, contending that the deposits were repayments of loans by members and should not be treated as unexplained cash credit. The Commissioner of Income Tax (Appeals) dismissed the appeal.…

Legal Issues

• 1. Whether the deposits made in specified bank notes should be treated as unexplained cash credit under section 68 of the Income Tax Act.
• 2. Whether the Assessing Officer was justified in rejecting the explanation offered by the assessee for the source of the cash deposits.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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