Paharhati O Uttar Memari Cooperative Agricultural Marketing Society Ltd. Vs. ACIT, Ward-2(2), Burdwan

Parties Involved

Facts Summary

The assessee, Paharhati O Uttar Memari Cooperative Agricultural Marketing Society Ltd., is a Primary Agricultural Cooperative Credit Society registered under the West Bengal Co-operative Society Act 2006. During the assessment year 2017-18, the assessee did not file its income return. The Assessing Officer completed the assessment under section 144 of the Income Tax Act, 1961, and found that the assessee had received cash of Rs. 20,000 or above in single transactions against repayment of KCC loans, totaling Rs. 64,33,313. This amount was added to the assessee's total income under section 269SS of the Act. Consequently, a penalty under section 271D of the Act was imposed for Rs. 64,33,313. The assessee appealed this penalty order before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, who upheld the penalty. Aggrieved by this order, the assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the penalty imposed under section 271D of the Income Tax Act, 1961, is valid given that the assessee is a Primary Agricultural Co-operative Society and not an individual.
• 2. Whether the original order under section 144 of the Income Tax Act, 1961, passed by the Assessing Officer is valid.
• 3. Whether the Commissioner of Income Tax (Appeal) should have examined the records to determine if the conditions under section 269SS were satisfied.
• 4. Whether section 269SS is applicable to Co-operative Societies.
• 5. Whether the previous order under section 250 dated 14.08.2023 for penalty order under section 271E should be followed.
• 6. Whether the ex-parte order passed by the Assessing Officer was arbitrary and unjustified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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