TMI Blog2011 (6) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... Society for an amount of ₹ 1,31,00,880/-; 2. On the facts and in the circumstances of the case, the ld. CIT (Appeals) has erred in law as well as on facts deleting the addition made on account of Interest income on ₹ 1,31,00,880/- amounting to ₹ 4,58,530/-. 3.1 The assessee is a Co-operative Society engaged in accepting deposits and giving loans as per guide-lines of NABARD. During the course of assessment proceedings the assessing officer noticed that there was an addition of a sum of ₹ 1,31,00,880/- in the account of Suspense Individual and Society . The assessing officer asked the assessee to explain the same. It was submitted that such amount does not represent income of the assessee as the said amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive bank normally ranging from ₹ 1,000/- to ₹ 3,000/- and such amount was to be utilized as per the instructions of Registrar of the Co-operative Societies. The bank also cannot re-pay or utilize such amount at its option or upon the instructions of the depositors. Such societies are also required to get their accounts audited from the auditors appointed by the Govt. and audit fees is being paid by the Registrar of Co-operative Societies out of such accounts. It is only on the fulfillment of these conditions, the Registrar of Co-operative Societies will permit to transfer these balances to the regular accounts of the society and a detailed procedure was also submitted and it was claimed that the said amount lying in those accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly considered the submissions of the ld. Sr. DR. We have carefully gone through the assessment order and the order passed by the ld. CIT (Appeals). Right from the opening it has been the contention of the assessee that the amount outstanding in the accounts represents the amount of deposits made by the persons, who intended to open new accounts with the assessee bank and until all the formalities are completed and accounts of the assessee is opened, the said amount was lying in the said account. In case of non-opening of the account, the amount was to be refunded back to the respective depositors. These contentions of the assessee have not been controverted either by the assessing officer or the ld. CIT (Appeals) and there is no material on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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