Tribunal grants relief by treating deposits as capital receipts, restricts disallowances, and applies amended provisions.

The Tribunal partly allowed the appeals, granting relief to the assessee by treating deposits as capital receipts and restricting disallowances under Section 14A to the extent of exempt income. The Tribunal directed the AO to apply amended provisions of Section 40(a)(ia) for the assessment year 2015-16 and remanded certain issues for verification and de novo adjudication. The delay in filing appeals was condoned, and the Tribunal provided significant relief to the assessee in various aspects of the case.

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Issues Involved:
1. Re-opening of assessment under Section 147/148 of the Income Tax Act, 1961.
2. Applicability of Section 194A to Non-Availing Compensation (NAC).
3. Disallowance under Section 40(a)(ia) of the Income Tax Act, 1961.
4. Treatment of deposits as income.
5. Disallowance under Section 14A read with Rule 8D.
6. Computation of book profit under Section 115 JB of the Income Tax Act, 1961.

Summary:

Issue 1: Re-opening of Assessment under Section 147/148
The assessee challenged the re-opening of assessments for various years, arguing that it was done without valid reasons. The Tribunal did not specifically address this issue in detail as the primary relief sought by the assessee was granted on other grounds.

Issue 2: Applicability of Section 194A to NAC
The assessee contended that the provision of Section 194A should not apply to NAC. The Tribunal found that the NAC paid by the assessee to its members was treated as interest, and since the business was considered to be in the nature of Collective Investment Schemes (CIS), the amount received from members should be treated as capital receipts and not income. Thus, the Tribunal directed to reduce the amount received from members while calculating the total income of the assessee.

Issue 3: Disallowance under Section 40(a)(ia)
The Tribunal held that the NAC paid by the assessee was in the nature of interest, and since no TDS was deducted under Section 194A, the disallowance under Section 40(a)(ia) was upheld. However, the Tribunal allowed the reduction of deposits from the sale proceeds, treating them as capital receipts. This relief was consistently granted across all assessment years involved.

Issue 4: Treatment of Deposits as Income
The Tribunal agreed with the assessee that the deposits received from members should not be treated as income but as capital receipts, given the nature of the business as CIS. Consequently, the Tribunal directed that these amounts be reduced while calculating the total income.

Issue 5: Disallowance under Section 14A read with Rule 8D
For the assessment years 2013-14 and 2014-15, the Tribunal directed the AO to restrict the disallowance under Section 14A to the extent of exempt income earned by the assessee during the year. This decision was based on the jurisdictional High Court's ruling that disallowance under Section 14A cannot exceed the quantum of exempt income.

Issue 6: Computation of Book Profit under Section 115 JB
For the assessment year 2015-16, the Tribunal directed the AO to compute the book profit under Section 115 JB without resorting to the computation under Section 14A read with Rule 8D, following the Special Bench decision in ACIT vs Vireet Investment (P) Ltd.

Additional Points:
- Appeals for the assessment years 2009-10 to 2015-16 were heard together and disposed of by a consolidated order.
- The delay of 2 days in filing some appeals was condoned in the interest of justice.
- The Tribunal remanded certain issues back to the AO for verification and de novo adjudication, particularly regarding the correct amount of NAC and the principal amount repaid.

Conclusion:
The appeals were partly allowed, with the Tribunal granting significant relief to the assessee by treating deposits as capital receipts and restricting disallowances under Section 14A to the extent of exempt income. The Tribunal also directed the AO to apply the amended provisions of Section 40(a)(ia) for the assessment year 2015-16.

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