9911796707
TMI Blog2025 (1) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... ome tax Act, 1961 for Rs. 1,14,509/- on the alleged violation of the appellant in complying with the provisions of section 80A(5) of the Income tax Act, 1961. 3. That the ld. CIT (A) has erred in law in confirming the action of the Ld. AO in disallowing the claim of the appellant u/s 80P (2) of the Income tax Act, 1961 for Rs. 5,62,832/- being interest received from Co-operative Bank on the alleged violation of the appellant in complying with the provisions of section 80A(5) of the Income tax Act, 1961 4. That the appellant craves leave to add, amend, alter, withdrawn any of the grounds of appeal before hearing. 2. The appeal filed by the assessee is delayed by 26 days. The ld. A/R has filed condonation applications dated 28.08.2024 and 30.08.2024 along with an Affidavit of Shri Ram Narain, Secretary of Soyala Gram Sewa Sahakari Samiti Ltd., duly verified by Notary Public, which reads as under :- "I, Ram Narain Jat S/o Shri Badri Lal Jat, aged years, secretary of Soyala Gram Sewa Sahkari Samiti Ltd., Gram Soyala, Jaipur Road, Tonk (Rajasthan) - 304 001, do hereby solemnly affirm and declare as under :- 1. That for the AY 2015-16 assessment of Income of our society was fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the grounds of appeal herein above is an additional ground which, due to inadvertence, could not be taken up before the ld. CIT (Appeals). The assessee has, thus, prayed that this additional ground being purely legal in nature and does not require any adjudication of facts, the same be admitted for adjudication. In this regard, the ld. AR placed reliance on the judgment of Hon'ble Supreme Court in the case of NTPC vs. CIT, 229 ITR 383 (SC). 4. We have heard both the sides in respect of admission of additional ground. The additional ground raised by the assessee is purely legal in nature and also goes to the root of the matter regarding the validity of the assessment. The assessee has disputed the action of the AO in violation of provisions of section 147 of the IT Act, 1961. Therefore, this issue raised by the assessee can be adjudicated on the basis of the facts and material available on the assessment record. Accordingly, in view of the decision of the Hon'ble Supreme Court in case of NTPC vs. CIT, 229 ITR 383 (SC) the additional ground raised by the assessee is admitted for adjudication. 5. The brief facts of the case are the assessee is a cooperative society registered un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the AO was satisfied about this particular reason as mentioned by him at page no. 6 of the order wherein he has categorically stated that no variation is proposed on the issue of cash deposit of Rs. 63,33,000/- in the bank account. Meaning thereby that the ld. AO did not make any addition/ disallowance on the reason for issue of notice u/s 148. Under such circumstances no disturbance could have been made by him on other issues. The provisions of section 147 of the Income tax Act, 1961 are as under :- Income escaping assessment. 147. If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year). Explanation.-For the purpose of assessment or reassessment or re-computation under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formulated by the CBDT through ITBA software under the head 'NMS cases'. As per the specific information, Soyala Gram Sewa Sahakari Samiti Limited (PAN : AAHAS1052Q) has carried out following transactions during the financial year 2014-15, relevant to the assessment year 2015-16" :- S.No. Name of Bank Cash Deposited 1. Axis Bank Limited Rs. 63,33,000/- Total Rs. 63,33,000/- "It is further noticed that the assessee has not filed his return of income for the AY 2015-16. In absence of return, the above transactions made by the assessee remains unexplained. Thus income from above transactions has not been offered for tax and due tax has not been paid." The issue of cash deposit was examined by the ld. AO during assessment proceedings and in the assessment order on page 6 the ld. AO states that no variation is proposed on the issue of cash deposit by the assessee society in its bank account and finally he has not made any addition on this score. He has disallowed the claim of the assessee u/s 80P claimed on interest from Bank and the surplus appearing in Profit and Loss Account. It is apparent that no addition has been made by the ld. AO on the issue on which rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a NIL order. Once it is found that none of the reasons recorded by the Assessing Officer for initiating proceedings under section 147 was germane to initiation of such proceedings, then it has to be held that the AO had no reason to believe that any income had escaped assessment and, therefore, any further proceeding would be without jurisdiction. But still he moved further without having jurisdiction and made other additions in the assessment which is illegal as the AO has exhausted his jurisdiction as soon as he was satisfied that the cash deposit of Rs. 63,33,000/- in the bank account of the assessee, for which the case of the assessee was reopened under the provisions of section 147 read with section 148 of the IT Act, was satisfactorily explained. Therefore, taking into consideration the various case laws discussed herein above, we are of the view that the other disallowances/additions made by the AO in the assessment order are illegal. We, therefore, allow the Ground no. 1 of the assessee and quash the other disallowances/additions made by the AO. 10. Since we have allowed Ground No. 1 and decided to quash all other additions/disallowances made in the assessment order, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
