TaxTMI 
TaxTMI 
2022 (9) TMI 1606
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....hort) is not justified in upholding the denial of deduction u/s. 80P[2][a][i] of the Act to the extent of Rs. 24,44,073/- that has been computed by the Assessing Officer as the profits earned by the appellant from the business of providing credit facilities to associate members under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] erred in holding that the aforesaid profits computed in respect of the business of providing credit facilities to associate members, who could neither vote nor were entitled to a share in the profits as per the bye-laws of the appellant cannot be allowed as deduction u/s. 80P[2][a][i] of the Act having regard to the rationale behind the judgment of the Hon'ble Supreme Court in the case of Citizen Co-Operative Society reported in 397 ITR 1 under the facts and in the circumstances of the appellant's case. 4. The learned CIT[A] erred in holding that the activities of the appellant undertaken with associate members amounts to dealing with non-members without appreciating that there is no prohibition under the Karnataka Cooperatives Societies Act, 1959 and thus, there was no violation of any of th....
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....sh credit. 9. Without prejudice to the above, the learned CIT[A] ought to have appreciated that the extent of SBN's deposited by the appellant during demonetization period was only Rs. 38,40,000/- and not Rs. 43,10,760/- as held by the learned A.O. 10. Without prejudice to the above, the tax levied u/s 115BBE of the Act at 60% is highly excessive and liable to be reduced substantially. 11. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies himself liable to be charged to interest u/s 234-B and 234-D of the Act, which under the facts and in the circumstances of the appellant's case and the levy deserves to be cancelled. 12. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be awarded costs in prosecuting the appeal and also order for the refund of the institution fees as part of the costs." ITA No. 361/Bang/2022 "1. The order of the learned AO in so far as it is against the appellant is opposed to law, equity, weight of evidence, probabilities, ....
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....erest income earned by the appellant was from out of the funds of the business of providing credit facilities to the members and therefore, the said interest income formed part of the income earned from business and therefore, the same cannot be assessed under the head "Other Sources" under the facts and in the circumstances of the appellant's case. 7. Without prejudice, the learned P.C.I.T is not justified in law in directing the learned A.0 to deny the alternate claim for deduction u/s 80P[2][d] of the Act to the extent of income earned from co-operative banks which are nothing but co-operative societies in possession of a license from the RBI under the facts and in the circumstances of the appellant's case. 8. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered." 2. Brief facts of the case are as under: 2.1 The assessee is a cooperative credit society engaged in providing credit facilities to its members, filed its return of income for the assessment year under consideration on 20/09/2016 declaring Nil income after claiming Chapter V....
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.... CIT(A), the assessee is before us. 4. Ground nos. 2-6 is in respect of disallowance of deduction claimed u/s. 80P proportionately. 5. The Ld.AR submitted that, the entire issue requires re-examination in the light of decision rendered by Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. and others reported in (2021) reported in 431 ITR 1. He submitted that the coordinate bench restored identical issue to the file of the A.O. in many cases for examining the deduction claimed u/s 80P(2)(a)(i) of the Act, in the light of decision rendered by Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. (Supra). The ld.DR supported the order of the lowers authorities. We have heard both the parties and perused the materials record. 6. We find merit in the prayer of the assessee since the issue of deduction u/s 80P(2)(a)(i) of the Act requires fresh examination in the light of decision rendered by Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. (supra), we set aside the order passed by Ld. CIT(A) on this issue and restore the same to the file of the A.O for examining it afresh as discussed above. A....
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....TA.II and the last one dated 09/08/2019 in F.No. 225/145/2019-ITA.II. These instructions gives a hint regarding what kind of investigation, enquiry, evidences that the assessing officer is required to take into consideration for the purpose of assessing such cases. 10. In 1 of such instructions dated 09/08/2019 speaks about the comparative analysis of cash deposits, cash sales, month wise cash sales and cash deposits. It also provides that whether in such cases the books of accounts have been rejected or not where substantial evidences of vide variation be found between these statistical analyses. Therefore, it is very important to note that whether the case of the assessee falls into statistical analysis, which suggests that there is a booking of sales, which is non-existent and thereby unaccounted money of the assessee in old currency notes (SBN) have been pumped into as unaccounted money. 10.1 The instruction dated 21/02/2017 that the assessing officer basic relevant information e.g. monthly sales summary, relevant stock register entries and bank statement to identify cases with preliminary suspicion of back dating of cash and is or fictitious sales. The instruction is als....