TaxTMI 
TaxTMI 
2025 (5) TMI 31
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....e ignoring the facts that Sikkim State Cooperative Bank Limited and Citizens Urban Cooperative Bank Limited though registered under the Sikkim Cooperative Societies Act, 1978, they are not primary agriculture credit society or primary cooperative agriculture and regular development bank, according to section 80P(4) of the Act, this section shall not apply in relation to any cooperative bank other than a primary agricultural credit society or primary cooperative agricultural and rural development bank. 2. The Department craves the right for alteration, additions, deletion and modification of these grounds of appeal." 3. The brief facts of the case are that the assessee is a cooperative society registered under the Sikkim Co-operative Societies Act, engaged in the business of wholesale supply of consumer goods. The assessee was assessed to tax in the status of an AOP and had filed its return of income for the AY 2020-21 on 12.02.2021 declaring total income at Rs. 'Nil' after claiming deduction u/s 80P of the Act. The case of the assessee was selected for complete scrutiny under CASS for verification of various issues. In the course of assessment proceedings, statutory not....
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....ng regard to the nature and quantum of the income alleged to be under reported, is bona fide within the meaning of sub-section (6) of section 270A, and the appellant has disclosed all the material facts to substantiate the said explanation. Therefore, the action of AO in imposing penalty under section 270A for under reporting of income, in respect of this disallowance, cannot be sustained. ii) Disallowance of claim of deduction u/s 80G of the Act: 6.2.2 On considering the totality of facts, I find that this cannot be a case of deliberate under reporting of income on part of the appellant. Furthermore, I also note that the appellant has been consistent in offering explanation with regard to the said claim of expenditure in the course of assessment proceedings, penalty proceedings as also during the appellate proceedings. I find that the explanation offered by the appellant, having regard to the nature and quantum of the income alleged to be under reported, is bona fide within the meaning of sub-section (6) of section 270A, and the appellant has disclosed all the material facts to substantiate the said explanation. Therefore, the action of AO in imposing penalty und....
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....ome, within the meaning of section 270A of the Act. The alleged under-reporting by way of making an incorrect claim in law, was purely a result of oversight, for which a bonafide explanation was offered by the appellant. This is not a case of misrepresentation or suppression of facts, as all the relevant and material facts were already on record. Therefore, the action of AO in levying penalty of Rs. 1,43,036/- under section 270A at the rate of 50 percent of tax payable on under-reported income is not sustained. Further, the action of AO in levying penalty of Rs. 1,00,18,578/- under section 270A at the rate of 200 percent of tax payable on under-reporting in consequence of misreported income is also not sustained, as the related disallowance of deduction under section 80P has itself been deleted in appeal. Accordingly, the Jurisdictional Assessing Officer (JAO) is directed to delete the aggregate penalty of Rs. 1,01,61,614/-levied under section 270A, on these accounts. These grounds of appeal are allowed. 8. In Ground No. (4), the appellant has sought leave to add, substitute, modify, delete or amend or to raise additional grounds of appeal. No such option has been exercise....
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.... been furnished for the first time under section 148; (f) the amount of deemed total income reassessed as per the provisions of section 115JB or section 115JC, as the case may be, is greater than the deemed total income assessed or reassessed immediately before such reassessment; (g) the income assessed or reassessed has the effect of reducing the loss or converting such loss into income. (3) The amount of under-reported income shall be,- (i) in a case where income has been assessed for the first time,- (a) if return has been furnished, the difference between the amount of income assessed and the amount of income determined under clause (a) of sub-section (1) of section 143; (b) in a case where no return of income has been furnished or where return has been furnished for the first time under section 148,- (A) the amount of income assessed, in the case of a company, firm or local authority; and (B) the difference between the amount of income assessed and the maximum amount not chargeable to tax, in a case not covered in item (A); (ii) in any other case, the difference between the amount of income reasse....
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....such amount as is sufficient to cover such receipt, deposit or investment. (5) The amount referred to in sub-section (4) shall be deemed to be amount of income under-reported for the preceding year in the following order- (a) the preceding year immediately before the year in which the receipt, deposit or investment appears, being the first preceding year; and (b) where the amount added or deducted in the first preceding year is not sufficient to cover the receipt, deposit or investment, the year immediately preceding the first preceding year and so on. (6) The under-reported income, for the purposes of this section, shall not include the following, namely:- (a) the amount of income in respect of which the assessee offers an explanation and the Assessing Officer or ^96[the Joint Commissioner (Appeals) or] the Commissioner (Appeals) or the Commissioner or the Principal Commissioner, as the case may be, is satisfied that the explanation is bona fide and the assessee has disclosed all the material facts to substantiate the explanation offered; (b) the amount of under-reported income determined on the basis of an estimate, if the acc....