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TMI Blog2020 (12) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... 221(1) of the Act of Rs. 3,30,930/- on the basis of intimation u/s. 143(1)(a) and CIT(A) has also erred in sustaining the same though the case was under scrutiny assessment u/s. 143(3) of the Act and therefore, the said intimation has merged into assessment order u/s. 143(3) of the Act. 2. On the facts and circumstances of the case and in law the Ld. A.O and CIT(A)-25, has failed to appreciate that the net taxable income of the Society is nil after claim of deduction u/s 80P of the Act. 3. That the order of penalty passed by the A.O u/s 221(1) of the Act, and sustained by the CIT(A), has become in fructuous in view of the fact that the CIT(A) has allowed the claim of deduction u/s. 80P of the Act, for the entire income earned by the soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative bank other than a primary agricultural credit society and primary cooperative agricultural and rural development bank, and he has categorized the assessee as cooperative bank as per conditions laid down u/s 56(c)(ccv) of part V of the Banking Regulation Act, 1949.Hence denied the claim deduction u/s 80P(2)(a)(i)of the Act and assessed the total income of Rs. 9,76,280/-and passed order u/s 143(3) of the Act on 10.03.2015. Subsequently, The A.O initiated penalty proceedings u/s 221(1) of the Act and observed that the assessee is in default for nonpayment of self assessment tax. Since there was no compliance on this disputed issue, the A.O has levied a penalty of Rs. 3,30,930/- u/s 221(1) of the Act vide order dated 05.03.2013. Aggrieve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er claiming the deduction u/s 80P of the Act of Rs. 9,76,280/-. The Ld. AR demonstrated the copy of income tax return in paper book at page 15 to substantiate the claim. We find that, the assessment order was passed u/s 143(3) of the Act disallowing the claim of deduction u/sec80P of the Act. On appeal the LdCIT(A) has allowed the assessee's claim. Even otherwise, when the quantum addition has been deleted by the appellate authority, penalty on such addition is not sustainable. Further, on perusal of the facts, we found that the assessee has filed the return of income disclosing total income as Rs. Nil and is also evident from page 1 of the assessment order. We are of the opinion, that when the assessee has filed the return of income with R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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