2023 (3) TMI 1502

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..... e assessee submitted during assessment proceedings that identity of persons and nature of deposits were duly explained and all relevant records were filed, hence, section 68 was not applicable in assessee s case. There is no dispute that all those persons were members of the assessee society. Once the assessee has filed all the relevant details regarding the depositors, the onus shifts on the revenue. The AO has not carried out any independent inquiries and merely added the amounts u/s 68. Addition made by AO under section 68 are not maintainable. Accordingly, AO is directed to delete the addition - Decided in favour of assessee.
SHRI S.S. GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER For the Assessee : Shri Pramod .....

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..... ficer(AO) observed that assessee had accepted cash in old currency from its members of Rs. ,1,21,99,435/- during the demonetization period on various dates. The ld.AR submitted that all the details regarding members from whom these amounts were accepted were provided to the AO. The ld.AR further submitted that there are only three requirements under section 68 which assessee has to prove those are identity, creditworthiness and genuineness. Assessee had proved identity of the depositors, genuineness of the transactions, and the assessee being a cooperative credit society cannot ask the depositors to prove creditworthiness. If AO had any doubts AO could have issued summons and verified the same directly from the depositors. In this case, ass .....

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..... s no dispute that assessee provided list of customers who had deposited banned currency into the account. There is no dispute that all those persons were members of the assessee society. Once the assessee has filed all the relevant details regarding the depositors, the onus shifts on the revenue. The AO has not carried out any independent inquiries and merely added the amounts u/s 68. ITAT Pune Bench in ITA No. 561/PUN/2022 for A.Y. 2017-18 dated 03.01.2023 has held in identical facts as under : "4. I have heard the rival submissions and perused the relevant material on record. It is seen that the assessee is a Urban Cooperative Credit Society which received Rs. 1,78,400/- from 15 depositors whose all the necessary particulars have been g .....

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