2023 (7) TMI 793

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nds of Appeal:- "1. The Ld. CIT (A) erred on facts and in law in upholding action of Assessing Officer i.e. CPC in invoking provisions of section 154 without appreciating that the issue as to whether income of a Co- Operative Housing Society is assessable as Co-op Society u/s 80P or as AOP at maximum marginal rate itself is debatable and therefore, no rectification u/s 154 was permissible. 2. The Ld. CIT (A) erred on facts and in law in upholding action of Assessing Officer i.e. CPC in assessing income of the appellant at maximum marginal rate without appreciate that share of each member in the cooperative Society is specific and identifiable and therefore, while assessing income of appellant as AOP, income of the appellan....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he brief facts of the case are that the assessee has filed return of income showing total income of Rs. 2,72,718/- and computed tax at Rs. 1,136/- on such income. However, the counsel for the assessee submitted that at the time of filing of return of income, the same was inadvertently filed by the CA of the assessee in the status of AOP, whereas, the assessee is a cooperative society, working solely for the benefits of its members, and the income of the assessee is not liable to be taxed, since it is based on the principles of mutuality. The return of income was processed by CPC and in the intimation issued by CPC u/s 143(3) of the Act, it accepted income filed by the assessee, however, tax was computed Rs. 81,816/- i.e. at the maximum marg....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... submitted that the Department should have issued notice u/s 143(2) of the Act, before subjecting the assessee to the maximum marginal rate of tax. The assessee also furnished copies of returns for the previous and subsequent assessment years, in support of the contention that the assessee is governed by the principles of consistency, and therefore, cannot be subject to the higher rate of tax. In response, the Ld. DR relied on the observations made by the Ld. CIT(Appeals) in the appellate order. 7. We have heard the rival contentions and perused the material on record. Before us, the main arguments put forth by the counsel for the assessee is that in this particular year, a mistake has been committed by the CA of the assessee, wherein at....