2021 (12) TMI 406

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....f learned Departmental Representative, I have gone through the record carefully and proceed to decide these appeals ex-parte qua the assessee. 3. In Assessment Year 2013-14, the grievance of the assessee is that the learned CIT(A) has erred in confirming the addition of Rs. 6,06,180/-; whereas in Assessment Year 2014-15, the grievance of the assessee is that learned CIT(A) has erred in confirming the addition of Rs. 2,92,515/-. The facts in both the years are common; therefore, for the facility of reference, I take the facts from Assessment Year 2013-14. 4. The brief facts of the case are that the assessee is a Credit Co-operative Society engaged in the business of providing credit facility to its Members. It has filed its return of i....

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....ncome from other sources, deduction of Rs. 50,000/- as per the provisions of section 80P(2)(c)(ii) is being allowed. Penalty proceedings u/s. 271(1)(c) of the Act is also initiated for furnishing inaccurate particulars of income." AY 2014-15 "3.1.9 Accordingly out of an amount of Rs. 15,72,825-, claimed as deduction u/s.80P(2)(a)(i), amount not qualifying for deduction needs to be worked out. On gross receipts of Rs. 1,16,86,839/-, total income is worked out of NIL. As such on gross interest receipt from non credit cooperative banks of Rs. 21,73,523/-, profit which would not quality for deduction u/s 80P(2)(a)(i) would work out to be Rs. 2,92,515/- (21,73,523 x 15,72,825 / 1,16,86,839). Same is therefore not considered for....

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.... of Rs. 1,09,06,710/-; while the interest earned on deposits with other banks other than Co-Operative Society or Banks is shown at Rs. 43,78,709/-. It is pertinent to observe that if investment has been made with the Co-operative Bank, then it will qualify for deduction under Section 80P(2)(d) of the Act. Therefore, I allow both these appeal statistically and remit the issue to the file of the Assessing Officer for re-adjudication. The learned Assessing Officer shall examine the issue afresh in the light of judgment of Hon'ble Gujarat High Court in the case of State Bank of India vs. CIT, reported in [2016] 72 taxmann.com 64 and keeping in mind the provisions of Section 80P(2)(d) of the Act. It is also to be kept in mind that a co-operative....