TMI Blog2023 (1) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... we can infer that there was no lack of enquiry pertaining to the issues raised. While considering the fact that whether there was inadequacy in conducting the enquiry by the A.O. was to be looked into in view of the propositions laid by the various courts. The assessee has relied on the decision of Brahma Centre Development Pvt Ltd. [ 2021 (7) TMI 347 - DELHI HIGH COURT] wherein it was held that the inadequacy in conducting the enquiry by the A.O. cannot be the reason for the ld. PCIT to invoke the provision of section 263 of the Act. From the facts of the case, it is observed that the A.O. has enquired into the details of the cash deposits during demonetization period and there is no infirmity in the conclusion arrived at by the A.O. For the issue pertaining to the deduction u/s. 80P to the assessee for which the assessee has also furnished sufficient evidences in support of its claim, we are of the view that as there are divergent views in relation to interest received from the deposits made in co-operative banks, the A.O. is said to have taken one of the view possible and has allowed the impugned deduction. A.O. has considered the submissions of the assessee and has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to Rs.59,93,369/- and also to verify the applicability of the deduction u/s. 80P of the Act on other income amounting to Rs.11,24,334/-. 4. The assessee is in appeal before us, challenging the order of the ld. PCIT passed u/s. 263 of the Act. 5. From the facts of the case, it is observed that the assessee has deposited cash during the demonetization period from 09.01.2016 to 30.12.2016 in various banks, aggregating to Rs.2,02,05,729/-. It is observed that the A.O. during the assessment proceeding had issued notice u/s. 142(1) of the Act dated 09.09.2019, seeking for the following details: 1. Detailed note on the nature of business activities undertaken by you. 2. List of all bank accounts maintained by you in F.Y. 2016-17. Copy of Bank statement of all bank accounts maintained in your name for the year under consideration. 3. Copy of Return of Income, Balance Sheet, P/L Account and Audit Report for A.Y. 2015- 16, 2016-17 2017-18. 4. Copy of computation of income for the year under consideration. 5. Please furnish the details of deduction claimed by you under chapter VI-A of the IT Act, 1961 alongwith documentary evidences. 6. Please furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction u/s. 80P(2)(d) and 80P(2)(ia) of the Act, as the said interest income is received from deposits made with other than the Co-operative Societies and, hence, was not allowable u/s. 80P(2)(d) of the Act. The ld. PCIT relied on the decision of the Hon'ble Supreme Court in the case of Totgar Co-op. Sale Society vs. ITO, Karnataka [2010] 322 ITR 283 (SC) for the proposition that the interest received from other than the co-operative societies are not entitled to deduction u/s. 80P(2)(d) of the Act. The ld. PCIT held that the assessee does not qualify for deduction u/s. 80P for various credits such as other income of Rs.55,152/-, penal interest of Rs.3,71,060/-, notice fees of Rs.1,52,450/-, processing fees of Rs.5,45,672/- and held that the total of Rs.11,24,334/- has to be taxed u/s. 56 of the Act as income from other sources in the hands of the assessee which was not considered by the A.O. 7. On the above said grounds, the ld. PCIT invoked his jurisdiction u/s. 263 of the Act and set aside the assessment order dated 24.12.2009 to the A.O. for verification and consideration of these issues. The assessee is in appeal before us challenging the order of the ld. PCIT. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sheet, profit and loss account, and computation of income and acknowledgment of the return of income, filed by the assessee for the impugned year. This fact has also not been controverted by the Revenue. The moot question here is whether the assessment order dated 24.12.2019 passed u/s. 143(3) of the A.O. is erroneous and prejudicial to the interest of the Revenue. 12. From the above facts, it is observed that the ld. PCIT has alleged that the A.O. has not called for complete details of cash deposits made by the assessee during the demonetization period and that the A.O. has failed to call for details of cash deposits of earlier year and subsequent year for a comparative analysis from the respective banks by issuing notice u/s. 133(6) of the Act. From this, the ld. PCIT observed that the impugned amount of Rs.2,02,05,729/- should have been added as unexplained income of the assessee by the A.O. in the assessment order. The ld. PCIT has also stated that the IAP has raised objection for the assessee s interest income of Rs.97,93,581/- out of normal banking business of providing credit facilities to its members and interest income of Rs.59,93,368/- from investments made with co- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has furnished the details of the depositors along with their PAN and has also uploaded the said data as Cash Transaction 2016 in the income tax website. The assessee contended that the source of SBN s deposits was explained along with the details of members and their PAN during the assessment proceeding. The assessee is also said to have furnished copy of cash book during the impugned period along with date-wise details of SBN s with list of accountholders from whom SBN s were received was also enclosed. The assessee has also submitted the details of interest on loans and advances or facilities viz. CC/OD to its members along with the details of processing fee, penal interest on delayed payment of installment, recovery of loans along with the loan recovery charges, etc. were explained in detail by the assessee. The assessee contended that the impugned incomes are attributable to providing credit facilities to its members and, therefore, the assessee was eligible for deduction u/s. 80P of the Act. 13. From the above facts, we find that the A.O. has sought for details pertaining to all the issues raised by the ld. PCIT during the assessment proceedings and has also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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