2020 (7) TMI 308

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....ase file(s) perused. 2. We advert to the relevant facts in the instant case. This assessee is a cooperative credit society. Apart from carrying out co-operative credit activity, it owns four holiday homes on its own and also maintains/runs similar other holiday homes which are provided to its members in lieu of charging concessional maintenance charges. The assessee had filed is return on 21.11.2014 declaring NIL income. The Assessing Officer completed his regular assessment on 03.06.2016 assessing its taxable income at Rs.3,67,94,200/-. 3. Case file suggests that the PCIT thereafter issued his Section 263 notice dated 11.04.2018 proposing to invoke his revision jurisdiction for the following reason(s): "From the assessment order as wel....

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....s.l,49,456/-aggregating to Net Loss of Rs. 3,48,884/-. As per Balance Sheet, Fixed assets include the following Holiday Homes which were owned by the assessee. Maintenance charges received as well as payments made in respect of these properties were as under:- Particular Asset Value(Rs.) Receipts(Rs.) Payments(Rs.) Bakkhaii Holiday Home Building 4,99,495/- 1,04,950 65,412/- Digha Holiday Home Properties 84,04,005/- 8,91,375/- 10,09,565/- Kechki Holiday Home House Building 6,83,939/- 65,600/- 1,88,910/- Santiniketan Holiday Home Properties 41,05,352/- 4,55,110/- 4,29,340/- Total   15,17,035/- 16,93,227/- From the above details, it was clear that out of the total receipts from Holiday Homes, Rs.....

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....rections. We find no reason to sustain the PCIT's foregoing stand that the assessee's income derived from its holiday homes has to be bifurcated on ownership basis (supra). Learned CIT(DR) fails to dispute that the Assessing Officer had very examined the very issue and assessed the assessee's income from the said holiday homes under the business head than that claimed as income from other sources (supra). The PCIT's observations in para 14 of the impugned order that the assessee could not demonstrate that "the income from holiday homes as disclosed by it was in any manner whatsoever was examined" during assessment; turns out to be factually incorrect since the Assessing Officer had not only carried out necessary enquiries but also he c....