TaxTMI 
TaxTMI 
2018 (4) TMI 1516
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....nd issues are common, they are clubbed, heard together and disposed-off by way of this common order for the sake of convenience. 2. In this case a survey u/s 133A of the Income Tax Act, 1961 (hereinafter called as 'the Act') was conducted by the A.O. and observed that the assessee has not filed the Return of income though certain sources of income such as interest from bank in it's hands.. The assessee is a mutually aided co-operative society registered under the A.P. Mutually Aided Co-operative Societies Act, 1995. The source of income of the assessee is interest on loans, advances to its members and interest on fixed deposits held with the Karnataka Bank Limited. After conducting the survey on 31/10/2011, the assessee filed the R....
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....the reply has received from the assessee. The CIT(A) further observed that even if the assessment proceedings initiated u/s 148 of the Act are held to be declared invalid, the returned income stands, as it is because no additions have been made to the returned income. 4. Aggrieved by the order of the assessing officer, the assessee is in appeal before this Tribunal. 5. During the appeal hearing, the Ld. A.R. argued that the society has filed the return of income offering the income and paid the tax, the income offered was accepted and the order was passed. The assessee is mutually aided co-operative society and its income was not liable for tax, which was not realized by the assessee at the time of filing the return of income and argued t....
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.... Income. The assessee filed the Return of Income immediately after the survey and the AO has completed the assessment accepting the Income returned and no addition was made to the Returned Income. The assessee is mutual cooperative society, and engaged in (i) To encourage thrift, self help and mutual aid among members and afford all facilities for cultivating the habit of thrift and saving among members in accordance with the principles of cooperation as enunciated under the provisions of section 3 of the Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995; (ii) To accept deposits of money from the members repayable on demand or other wise and withdrawal by cheque, draft, order or otherwise for the purpose of lending or investmen....
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....r section 148 must be excluded from his total income, has to be entertained and dealt with on merits. Similarly Pune 'B' bench in ITA Nos.288 to 291/PN/2014 for the A.Ys. : 2006-07, 2007-08, 2007-08 & 2008-09 in the case of The Asst. Commissioner of Income Tax,Circle-8, Pune vs Bajaj Finance Limited, held that after section 143(3) of the Act was amended by the Finance Act (No.2) 1998 w.e.f. 01.10.1998, As per the amendment, the assessment under section 143(3) of the Act, inter-alia, envisages the Assessing Officer to grant refund of any amount due to the assessee consequent to the assessment and therefore, the Assessing Officer is statutorily empowered to determine the revised income which can be lower than the returned income. 8. The Ld....
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.... therefore is not subject to tax. Only the income which comes within the definition of section 2(24) of the Act is subject to tax. Under the Income Tax Act, in the case of cooperative societies the interest income of the assessee is allowed as deduction u/s 80P(2)(d) of the Act, which reads as under: "In respect of any income by way of interest or dividend derived by the co-operative society from investments with any other co operative society, the whole of such amount. 10. The interest income derived by the assessee from the Karnataka Bank is still taxable. As held by Hon'ble Supreme Court in the case of Bangalore Club cited (supra) and Totgars Co-operative Sale Society Ltd. V. ITO (2010) 322 ITR 283, the interest on deposits is not the ....