9911796707
TMI Blog2023 (1) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... led its return of income dated 25.10.2017, declaring total income at Nil. The assessee's case was selected for complete scrutiny and the assessment order dated 24.12.2019 was passed u/s. 143(3) in which the Assessing Officer (A.O. for short) has accepted the return of income declared by the assessee. The ld. PCIT invoked the provision of section 263 on the ground that the assessment order is prejudicial and erroneous to the interest of the Revenue and set aside the assessment order with the direction to examine the applicability of the provision of section 69A of the Act r.w.s. 115BBE on the cash deposits made by the assessee, amounting to Rs.2,02,05,729/-, to examine the applicability of the provisions of section 80P(2)(d) of the Act and u/s.269SS of the Act amounting 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, aggregati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ete details of cash deposits (old and legal notes) from the banks and has also failed to make a comparative analysis of deposits of earlier year and subsequent year from the respective banks and also from the assessee. Further to this, the ld. PCIT has stated that the assessee has shown interest income of Rs.97,93,581/- out of normal banking business of providing credit facility to its members and interest income of Rs.59,93,368/- from investments made with various co-operative banks. The ld. PCIT held that the assessee is not entitled to deduction 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 inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various banks for which the A.O. vide notice dated 09.09.2019 u/s. 142(1) has sought for details along with the details of deduction claimed by the assessee under Chapter VIA of the Act, the loan receipts and loan repayments made by the assessee along with the interest received and paid. The A.O. has also called for the other details, which pertains to the issues raised by the ld. PCIT. It is also observed that the assessee in response to the notice issued by the A.O. has furnished the documentary evidences along with the balance 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has specified that the out of the alleged six bank accounts mentioned by the PCIT, four accounts with Vasai Janata Sahakari Bank Ltd. does not belong to the assessee, except for two accounts viz. SVC Co-operative Bank Ltd. and Saraswat Co-operative Bank Ltd. belonging to the assessee. It is also specified that the assessee has given confirmation from Vasai Janta Sahakari Bank Ltd. stating that the other four accounts does not belong to the assessee. The assessee has also stated that during the assessment proceedings, 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 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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