2023 (1) TMI 272

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.... 2. The brief facts of the case are as follows: The assessee is a Co-operative Society engaged in the business of construction, lending and accepting deposits to the members of the assessee-society. For the assessment year 2018-2019, the return of income was filed on 03.10.2018 declaring `Nil' income after claiming deduction u/s 80P of the I.T.Act. The assessee had received interest of Rs.3,09,697 from Rural Electrification Corporation Limited (RECL) in respect of investment made. The Assessing Officer while completing the assessment u/s 143(3) of the I.T.Act on 05.04.2021, made addition of a sum of Rs.3,09,697 on the ground that the assessee was not entitled to deduction u/s 80P of the I.T.Act, since the receipt of income was not from....

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....the assessee submitted that the assessee has not claimed any deduction u/s 80P(2)(d) of the I.T.Act with regard to interest income of Rs.3,09,697 received from RECL. Therefore, it was contended that the imposition of penalty u/s 270A of the I.T.Act is bad in law. As regards the addition on merits, the learned Counsel submitted that on noticing the mistake, the assessee has filed rectification application before the A.O. The learned Counsel furnished the computation of statement of income for the relevant assessment year. 5. The learned Departmental Representative supported the orders of the A.O. and the CIT(A). 6. We have heard rival submissions and perused the material on record. On perusal of the computation of statement of income f....

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.... Income from other sources Bank Interest 1,11,61,371 1,66,163 1 5,000 2 1,75,000 3,46,163 1,15,07,534 3 1,23,30,023 -8,22,489 -8,22,489 87,884 -9,10,373 4 91,22,037 Dividends 5 1,05,490 Interest income (other than Bank interest) Interest on Time deposits Karnataka State Co-operative Housing Federation 2,47,000 S.K.Employees Co-operative Society Ltd 6,36,250 Rural Electrification Corporation 3,09,697 Laxmananda Co-operative Society 2,49,006 Karnataka State Co-operative Housing Federation-on Reserve Fund 16,60,543 31,02,496 Taxable Interest 31,02,496 1,23,30,023 Income chargeable under the head "other sources" Gross Total In....