- (1.) This appeal under Section 260A of the Income-tax Act, 1961 (for short ''the Act''), has been filed by the Revenue against the order dated February 15, 2008 passed by the Income-tax Appellate Tribunal Amritsar Bench, Amritsar (in short ''the Tribunal'') in I.T. A. No. 115 (ASR) of 2003, (Asst. CIT v. Citizen Co-operative Bank Ltd., 2009 314 ITR 91) relating to the assessment year 1999-2000.
(2.) The appeal was admitted by this Court for determination of the following substantial question of law: Whether on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal is right in holding that Section 68 of the Income-tax Act, 1961 does not apply to the co-operative bank for assessing the unexplained credits as taxable income ?
(3.) The facts, in brief, necessary for adjudication as narrated in the appeal, are that the Respondent-Assessee is a co-operative society. It filed return of income for the assessment year 1999-2000 on June 29,1999 declaring ''nil'' income. Later on, vide letter dated February 1, 2000, the Assessee was informed that during the course of survey under Section 133A(1) carried out at the bank on October 1,1999, certain accounts and transactions were noticed whereby amounts contained in FDRs were credited to those accounts and thereafter the cash was withdrawn and the accounts were closed. In the wake of this situation, the Assessee-bank was required to provide identity of those account holders, but the Assessee expressed its inability to prove the genuineness of the creditors/depositors. Owing to failure of the Assessee to do so, action under Section 68 of the Act was recommended and accordingly, a notice under Section 148 of the Act was issued to the Assessee. Thereafter assessment was made under Section 143(3) of the Act vide order dated March 28, 2002 at an income of Rs. 59,41,593, by making addition of the said amount, on account of peak balance standing in the name of the various depositors. The Commissioner of Income-tax (Appeals) (in short ''the CIT (A)''), deleted the addition vide order dated December 31, 2002, made by the Assessing Officer. The Revenue carried the appeal before the Tribunal. The order of the Commissioner of Income-tax (Appeals) having been upheld and the Revenue's appeal dismissed, it is how the Revenue is in appeal before us.;