Vidyasagar Samabay Krishi Unnayan Samity Ltd. vs. ACIT, Circle-38, Kolkata

Parties Involved

Facts Summary

The assessee, Vidyasagar Samabay Krishi Unnayan Samity Ltd., is a cooperative credit society engaged in providing loans and advances to its members and trading activities in fertilizers and allied products. During the demonetization period, the assessee deposited a total cash of Rs.2,20,97,000/-. The assessee claimed that this amount was from the repayment of loans received from its members. The Assessing Officer treated the cash deposits as unexplained income under section 69A of the Income Tax Act. The ld. CIT(A) confirmed the additions made by the Assessing Officer. The assessee appealed against the order, arguing that no cash sales were made during the demonetization period and the deposits were from amounts collected by its agents before the demonetization period.…

Legal Issues

• 1. Whether the cash deposits made by the assessee during the demonetization period should be treated as unexplained income under section 69A of the Income Tax Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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