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2018 (9) TMI 1012 - AT - Income TaxClaim for deduction under Section 80P - Held that:- Assessing Officer has disallowed the assessee's claim for deduction under Section 80P on the issue that the assessee is a federation of societies and other members and hence the concept of who constitute “Members” is very relevant. We also observe that the Assessing Officer has rendered a finding that the sales are made to agencies other than members, by invoking the principle of mutuality. In the case of Citizen Co-operative Society Ltd. (2017 (8) TMI 536 - SUPREME COURT) in the context of credit co-operative societies has ruled on these two principles while deciding the issue of deduction under Section 80P of the Act. AO is directed to consider the principles enunciated in the aforesaid decision of the Hon'ble Apex Court (supra) while passing orders, after considering the jurisdictional issues remanded back. JCIT assuming jurisdiction over the case on hand without a specific order assigning the case to him - Held that:- JCIT, in the case on hand, has assumed jurisdiction over the case by mentioning that the JCIT has been given concurrent jurisdiction and has also referred to the Central Action Plan for 2013-14. The learned CIT (Appeals) has held that the JCIT has concurrent jurisdiction over this case in terms of Notification issued under Section 140 by the CBDT. As per the decision cited above it is an imperative mandatory requirement of law that an order in writing, to this effect, must be passed under Section 127 by the jurisdictional Commissioner of Income Tax for effecting the transfer of assessment proceedings from one Assessing Officer to another Assessing Officer. From the records before us, it is not clear as to whether such an order has been passed. Considering that there is no clarity on the process adopted, before the JCIT came to pass the impugned orders of assessment for Assessment Years 2010-11 to 2013-14; particularly whether an order under Section 127 of the Act was passed in this regard. In this factual matrix of the case, we deem it appropriate to remand the matter back to the file of the Assessing Officer to examine whether the necessary orders, as explained above, have been passed in the case on hand for the JCIT to assume valid jurisdiction to pass the impugned orders of assessment. Even if such an order is not passed, it would be a procedural issue and in terms of the decision of the Hon'ble High Court of Madras in the case of M/s. Home Finders Housing Ltd. Vs. ITO (2018 (5) TMI 260 - MADRAS HIGH COURT) such a defect is not fatal and can be cured / rectified by passing a fresh order. We remand this issue to the file of the Assessing Officer for necessary action in accordance with law.
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