TaxTMI 
TaxTMI 
TaxTMI 
2023 (2) TMI 813
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....ated 23rd March, 2022 rejecting the objections to the reopening as also the assessment order dated 30th March, 2022 passed by Respondent No. 2 under Section 147 r/w Section 144B of the Act for the assessment year 2014-15. 2. Briefly stated the material facts are as under: The Petitioner is a co-operative credit society registered under the Maharashtra Co-operative Societies Act, 1960, with membership being limited only to the employees of Indian Postal Service Government of India employed in the State of Maharashtra and Goa. The object of the society is stated to encourage savings habits amongst its members and to undertake activities for improving welfare of the members. It is stated that out of the fund collected from members, loans are....
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....of the Act came to be passed on 23rd November, 2016 whereby deduction under Section 80P of the Act only in regard to the holiday home charges was disallowed to the extent of Rs.1,00,650/- and added back to the income of the assessee, under the head income from other sources and by necessary implication the claim of the Petitioner for deduction under Section 80P of the Act with regard to interest income earned by the Petitioner on account of deposit of funds in the cooperative bank was therefore allowed. 4. A notice dated 19th March, 2021 under Section 148 of the Act came to be issued by the A.O. seeking to reopen the assessment proceedings for the assessment year 2014-15 on the ground that the income had escaped assessment for the said yea....
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.... of the Act. 6. Mr. Mistry, learned Senior Counsel for the Petitioner urged that there was no tangible material with the A.O. for initiating the reassessment proceedings and that it was nothing but a classic case of change of opinion. It is stated that the issue with regard to the entitlement of the Petitioner to claim deduction under Section 80P of the Act had been specifically gone into by the A.O. leading to the passing of the order of assessment under Section 143(3) of the Act. It was further urged by Mr. Mistry that the A.O. from the reasons recorded, did not establish that there was any failure on the part of the assessee to declare fully and truly the material facts necessary for the said assessment year and, therefore, it was urge....
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.... record'. 10. It can be noticed that in the present case the assessment was under Section 143(3) of the Act, during which the Petitioner had been served with the notice under Section 142(1) of the Act dated 27th September, 2016 asking the Petitioner to explain with documentary evidence the claim of deduction under Chapter VI-A of the Act, reply thereto was submitted by the Petitioner on 10th October, 2016 with an explanation that the Petitioner get fulfilled the conditions of eligibility under Section 80P of the Act, whereafter the order of assessment came to be passed on 23rd November, 2016. It is therefore clear that the issue stood considered as only a part of the deduction under Section 80P of the Act while disallowing the same in rega....
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....easons are the manifestation of the mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide the link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment. In the afore....