2019 (7) TMI 1078

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.... the validity of order passed by Pr.CIT u/s 263 of the Income Tax Act, 1961 (in short 'Act'). In the instant case, the assessee filed the return of income declaring Nil income on 19.02.2014 and claimed the deduction u/s 80P for a sum of Rs. 10,58,078/-. The case was selected for scrutiny and the assessment was completed u/s 143(3) on total income of Rs.Nil vide order dated 25.01.2016. Subsequently, the Pr.CIT found from the 26AS statement that the assessee had received a sum of Rs. 14 lakhs as interest on deposits made in Varahalakshmi Narasimha Swami Educational Trust (in short 'Trust') which is not a cooperative society. As per the provisions of section 80P(2)(a)(i) of the Act, in case the cooperative society is engaged in carrying on t....

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....n agreement and loan ledger etc. were furnished before the Ld.Pr.CIT. However, the Ld.Pr.CIT viewed, even after establishing all the evidences that the issue require to be examined since he was under the impression that the AO has allowed exemption without calling for any documentary evidence in support of the assessee's claim that the Trust is a member of the society. Ld.AR argued that since, the Trust is a member of the society and the amount given to the Trust is a loan and the bye laws of the society permits the Trust to become a member, there is no under assessment which caused prejudice to the revenue. The Ld.AR further submitted that during the assessment proceedings, the assessee has produced the books of accounts which were examin....