TaxTMI 
TaxTMI 
2022 (2) TMI 1243
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....se to the following 3 issues:- a) Disallowance of claim made u/s 80P(2)(a)(i) of the Income-tax Act,1961 ['the Act' for short]. b) Disallowance of claim made u/s 80P(2)(d) of the Act. c) Addition made u/s 68 of the Act. 3. The facts relating to the case are stated in brief. The assessee is a Souharda Credit Co-operative Society engaged in providing credit facilities to its members. It filed its return of income for the year under consideration admitting Nil income after claiming deduction u/s 80P of the Act. The A.O. however denied deduction u/s 80P of the Act and also made addition u/s 68 of the Act. Accordingly the AO determined the total income at Rs.30,66,060/-. The assessee challenged the assessmen....
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....ue and perused the record. The Ld. A.R. submitted that the law on deduction u/s 80P(2)(a)(i) of the Act, including the interpretation of the term "Members" has since been explained by the Hon'ble Supreme Court in the case of "The Mavilayi Service Co-operative Bank Ltd. & Others (431 ITR 1). Accordingly, he submitted that the claim of deduction u/s 80P(2)(a)(i) of the Act requires examination afresh in the light of decision rendered by Hon'ble Supreme Court in the case of The Mavilayi Service Co-operative Bank Ltd. (supra). 6. I heard Ld. D.R. on this issue and perused the record. I agree with the submissions made by Ld. A.R, since the assessment order has been passed prior to the decision rendered by Hon'ble Supreme Court in the case of ....
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....al took the view that this claim of the assessee requires examination at the end of AO, since it was not raised before lower authorities. The Ld. A.R. submitted that a part of the interest income earned by the assessee is from deposits kept with banks is related to the deposits made by it under statutory compulsion. Accordingly, he submitted that interest income earned from those deposits is exempt u/s 80P(2)(a)(i) of the Act. 9. I heard Ld. D.R. on this issue. I notice that the assessee is raising this issue for the first time before the Tribunal. In the case of M/s Vasavamba Co-operative Society Ltd (supra), the division bench of Tribunal has restored this issue to the file of the AO. Accordingly, following the above said decision of t....
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....bers towards repayment of loan, Pigmy collection, etc. The A.O. noticed that the Government has announced demonetization on 8.11.2016, whereby then existing Rs.1000/- & Rs.500/- currency notes were declared not to be legal tender. The A.O. took the view that the assessee has collected the above said amount after 8.11.2016, which is not permitted. Accordingly, the A.O. took the view that the above said amount represents unexplained money of the assessee and assessed the same u/s 68 of the Act. The A.O. also charged income tax on the above said deposit as per provisions of section 115BBE of the Act. The Ld. CIT(A) also confirmed the same. 13. The Ld. A.R. submitted that, under the provisions of section 68 of the Act, the assessee's liabili....
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....bove said deposits were collected by the assessee prior to 14.11.2016 and it cannot be considered as violation of any of the Provisions of the Act. Accordingly, he submitted that the A.O. was not justified in invoking the provisions of section 68 of the Act. 14. I heard Ld. D.R. on this issue and perused the record. I notice that the A.O. has not doubted the submissions of the assessee that the above said amount of Rs.24,47,500/- represents collection of money in the normal course of carrying on of business of the assessee, i.e., it represents money remitted by the members of the assessee society towards repayment of the loan taken by them and also towards pigmy deposits, etc. The Ld A.R submitted that the assessee has duly recorded in i....