TaxTMI 
TaxTMI 
2025 (6) TMI 1828
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....leted several additions made by the Assessing Officer vide his order dated 12.09.2022 passed under section 143(3) r.w.s. 144B of the Income-tax Act, 1961 [hereinafter referred to as "the Act"] Facts of the Case 2. The assessee is a credit co-operative society engaged in accepting deposits from and advancing loans to its members. It filed its return of income for A.Y. 2020-21 on 11.02.2021 declaring total income of Rs. 1,54,560/- and claimed deduction under section 80P(2)(a)(i) amounting to Rs. 89,91,830/-. The return was selected for complete scrutiny under CASS. During the assessment proceedings, the assessee failed to comply with notices issued under sections 142(1) and 143(2) as well as with the show cause notice dated 29.08.2022, ....
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....it operations of the society with identifiable members and was duly reflected in books and audit reports. iv. The gratuity provision of Rs. 70,000/- was already disallowed in the return filed by the assessee. v. The deduction u/s 80P(2)(a)(i) was allowable as the income arose from credit facilities provided to members, and interest from cooperative banks qualified under section 80P(2)(d). 4. Aggrieved by the order of CIT(A), the Revenue is in appeal before us raising following grounds of appeal: a) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 15,14,46,954/- made u/s 68 of the Act on account of current liabilities reflected in the Balance Sheet. b) The Ld. CIT(A) has erre....
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....n of Rule 46A. The DR strongly relied on the assessment order and sought restoration of the matter for de novo adjudication. 6. The Learned AR, in response, supported the well-reasoned order of the CIT(A) and contended that no fresh or additional evidence was filed. The CIT(A) adjudicated the appeal solely based on the financials, audit report, and computation already forming part of the return. It was highlighted that all provisions (e.g. Rs. 40 lakh and Rs. 70,000) were suo motu disallowed in computation. The AR placed reliance on the decision of Co-ordinate Bench in assessee's own case for A.Y. 2018-19 in ITA No. 1819/Ahd/2024 (order dated 18.02.2025), wherein similar additions u/s 68 and disallowance u/s 80P were deleted after detail....
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....embers, the existence of liabilities in this form is inherent to its functioning. The details were part of the audited financials and there is no material brought by the AO to suggest that these amounts are unexplained credits. Therefore, the CIT(A) rightly treated them as genuine liabilities, not falling within the purview of section 68. Ground (a) is, accordingly, dismissed. 10. Ground (b): Disallowance of Rs. 40,00,000/- on account of personal expenditure 11. The AO noted that the tax audit report referred to personal expenditure of Rs. 40,00,000/-, while the return disclosed 'NIL'. On verification, the CIT(A) found that this amount represented various provisions made by the assessee and the same were already added back in the comp....
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....lance sheet arising from regular credit operations do not attract section 68. Respectfully following the said decision and in the absence of any fresh evidence brought by the Revenue, we uphold the CIT(A)'s deletion. Ground (c) is dismissed. 16. Ground (d): Disallowance of Rs. 70,000/- u/s 40A(7) 17. The AO disallowed Rs. 70,000/- under section 40A(7) on the ground that it was not reported in the return, although it was mentioned in the tax audit report. The CIT(A) has verified that the assessee had already disallowed this provision in its computation under Part A-P&L, item 23. Since the amount stood already disallowed, there was no cause for a further addition. The AO's action clearly results in duplication. Ground (d) is dismissed. ....
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....leted ex parte under section 143(3) r.w.s. 144B due to noncompliance by the assessee with multiple statutory notices, including the final show cause notice dated 29.08.2022. We have carefully examined the record and the appellate order passed by the CIT(A). Although the CIT(A) has not expressly recorded a finding that no additional evidence was furnished, we note that the factual submissions made by the assessee before the appellate authority were based entirely on documents and financial statements that were part of the return of income, such as audited financial statements, the tax audit report filed under section 44AB, computation of income, and break-up of provisions and interest income which were either disclosed in the tax audit repor....