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2023 (5) TMI 212 - AT - Income TaxReopening of assessment u/s 147 - Disallowance of deduction u/s 80P(2)(d) in respect of income earned from deposits kept with the co-operative banks i.e. the Nationalized banks - HELD THAT:- Reassessment proceedings cannot be sustained, firstly, due to the reason that reassessment proceeding are based on mere ‘change of opinion’, secondly, no disclosure of full and true material facts by the assessee before the assessing officer, has not been substantiated by the Assessing officer, thirdly, there being no internal or external material to trigger the reopening of assessment or for recording the reasons to believe that income escaped assessment, the action is a kind of review of assessment already completed, for which the AO is not permitted. Hence, the reassessment proceeding u/s 147 is quashed as void ab initio. The ground of the appeal of the assessee are accordingly allowed. Deduction u/s 80P(2)(d) for interest from other than cooperative bank i.e nationalized bank - Interest from short term deposits with scheduled bank has been held as eligible by the Tribunal Shri Laxmi Narayan NagriSahkari Pat Sansthan Maryadait [2015 (8) TMI 1085 - ITAT PUNE] and Gunja Samabay Krishi Unnayan Samity Ltd. [2023 (1) TMI 783 - CALCUTTA HIGH COURT] under section 80P(2)(a)(i) of the Act and not under the section 80P(2)(d) - We are of the view that the Ld. CIT(A) has not adjudicated the issue in dispute of eligibility of deduction of interest from scheduled bank u/s 80P(2)(d), therefore the assessee should be given one more opportunity to appear before the Ld CIT(A) so that he can give his finding on the matter. We feel it appropriate to restore this issue back to the file of the Ld. CIT(A) for deciding after providing adequate opportunity of being heard to the assessee. Ground of appeal of the assessee is accordingly allowed for statistical purposes. Penalty u/s 272A - non-compliance on the part of the assessee for various notices issued u/s 142(1) - HELD THAT:- Assessee could not comply with the issue of notices due to the reason that the authorized representative of assessee was occupied in regulatory compliance on some occasions and on one occasion, he could not respond due to medical emergency. In our opinion, the assessee should not be penalized for any bonafide non-compliance on the part of the authorized representative of the assessee. The assessee has duly explained the reasons for non-compliance. In our opinion, the failure in compliance to the notices is not deliberate on the part of the assessee - We direct to delete the penalty levied u/s 272A of the Act by the AO. Addition of other receipts shown under the head “income from other sources” - HELD THAT:- Ultimately in the assessment order, the Assessing Officer has assessed income u/s 56 of the Act in respect of interest earned from deposits with bank and after reducing the corresponding expenses he made addition - Therefore, no addition has been made by the Assessing Officer in respect of other receipts and therefore, the ground No. 2 raised by the assessee being infructuous, same is rejected.
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