2025 (7) TMI 670

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....Act"] arising from the order dated 28.12.2018 passed u/s 143(3) of the Act pertaining to Assessment Year 2016-17. 2. Brief facts of the case are that the assessee society is registered under Co-operative Societies Act, as no profit or loss entity to financially help its member on the concept of mutuality. The society is earning income from interest on loan to its members and surplus funds are being kept in bank FDRs. The assessee society filed its return of income, declaring total income of NIL on 05.11.2016. The case was selected for scrutiny under CASS and thereafter, notice was issued and served upon the assessee. In response thereto, Ld.AR for the assessee attended the proceedings and furnished the requisite details as and when called ....

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.... of the IT Act. During covid period the office of the society was closed as it was in the congested old area of the city and shifted to 43, Lekh Ram Road, Daryaganj, New Delhi to provide smooth functioning and social distancing to the members and staff. The notices were not served on the assessee society as such could not be responded." 4. During the course of hearing, Ld.AR for the assessee submits that the income of the assessee on FDRs with Co-operative Bank was exempted u/s 80P of the Act and though the appeal filed by the was dismissed by ld. CIT(A) however, facts remains that the income of the assessee is exempted u/s 80P of the Act and could not be assessed under the head, "Income from other sources" as has been done in the instan....

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....perative Bank is not a concealed income and thus, he prayed that penalty levied u/s 271(1)(c) deserves to be deleted. 7. Ld. Sr. DR for the Revenue supports the orders of the authorities below and submitted that once the addition is sustained and accepted by the assessee by not filing further appeal, the same is admitted by the assessee as concealed income on which penalty u/s 271(1)(c) of the Act has rightly been levied by the AO. He further placed reliance on the judgement of Hon'ble Supreme Court in the case of Mak Data Pvt.Ltd. vs CIT-2 (2013) 358 ITR 593 (SC) and other judgements as relied by Ld.CIT(A) and prayed for confirmation of penalty so levied. 8. We have heard the rival contentions and perused the material available on record....