The Ponnezha Service Co-operative Bank Limited v. The Income Tax Officer

Parties Involved

Facts Summary

The Ponnezha Service Co-operative Bank Limited, a service co-op bank, filed its return on 02.12.2019 for the assessment year 2017-2018. The Assessing Officer completed the assessment under section 144 of the Act and disallowed the deduction claimed under section 80P. The AO also treated the cash deposited during the demonetization period as unexplained investments under section 69 of the Act. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) which was dismissed for non-appearance. The assessee challenged this order before the Income Tax Appellate Tribunal. The Tribunal set aside the order of the Commissioner of Income Tax (Appeals) and directed him to decide the appeal afresh after affording an opportunity of being heard to the assessee.…

Legal Issues

• 1. Whether the order of the Commissioner of Income Tax (Appeals) is illegal, arbitrary and unauthorized?
• 2. Whether the cash deposits made during the demonetization period should be treated as unexplained investments under section 69 of the Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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