TaxTMI 
TaxTMI 
2025 (7) TMI 1476
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....Delhi erred in sustaining the disallowance of claim of deduction of Rs. 4,64,183/- made by the Appellant u/s 80P(2)(d) in the return of income filed for the year, in view of Sec. 80AC of the Act. 3. The Learned Commissioner (Appeals), NFAC, Delhi erred in not adjudicating ground of disallowance of claim of deduction of Rs. 4,64,183/- u/s 80P of the Act on merits. 4. The appellant craves leave to add, amend, alter or withdraw all or any ground of appeal, at any time, upto the date of hearing of the appeal. 3. The brief facts qua the issue are that assessee had not filed Return of Income for the assessment year (A.Y.) 2018-19, relevant to the financial year 2017-18. The assessee is a registered co-operative society and main activity of the society is to purchase milk from its member in village area at NagichanalalMangrol and sale this milk to milk district sangh, Junagarh. As per the information available with the department, a notice u/s 148 of the Act, was issued through ITBA portal of the department, on 31.03.2022, after completing the proceedings u/s 148A of the Act, and passing order under clause (d) of section 148A of the Income-tax Act,1961, as under- ....
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....consideration. The source of the amount out of which the cash transaction have been made remains unexplained as the assessee has not filed return of income for the year under consideration. The unexplained source of the amount out of which the cash transaction have been made and non-filing of return suggests within the meaning of section 147 r.w.s. 148 of the Act that income chargeable to tax has escaped assessment for the year under consideration 7. Therefore, based on the above observations which originate from the material/information available on record with the assessing officer, income to the tune of Rs. 2,87,70,000/- has escaped assessment for the year under consideration. In view of the above facts, I am satisfied that the case of the assessee is fit case for issuance of Notice under section 148 of the Act for A.Y. 2018-19. 4. Accordingly, a notice u/s 148 of the I.T. Act 1961, was issued through ITBA portal of the department on 31.03.2022. In response, the assessee filed return of income, on 19.06.2022, showing total income of Rs. Nil, after claiming deduction of Rs. 4,64,183/-, u/s.80P(2)(d) of the I.T.Act. As mentioned above, the issue involved in this case i....
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....Act, during the year under consideration. As per section 80AC of the I.T.Act, for claiming deduction u/s 80P of the I.T.Act, it is mandatory to file the return of income u/s 139(1) of the I.T.Act. But as per the record, the assessee, cooperative society has not filed its return of income u/s 139(1) of the I.T.Act. In view of this fact, claim of deduction of Rs. 4,64,183/-, is proposed to be disallowed and added back to the total income." 7. In response to above show cause notice (SCN), the assessee has submitted, it's reply on 15.03.2023, stating that the section 80AC was introduced w.e.f 1/4/2021. Accordingly, the above amendment would not apply to the impugned assessment year, the section was not in force during the period under consideration i.e. assessment year 2019-2020 for that assessee relied the Judgement of honorable I.T.A.T.RAJKOT in the case of Madi Seva SahkariMandali Ltd. Amreli V/S. Adit(CPC) Bengalureu, ITA No.38/Rjt/2022, order dated 31/10/2022. 8. However, the assessing officer rejected the contentions of the assessee and disallowed the deduction under section 80P(2)(d) of the Act of Rs. 4,64,183/-. 9. Aggrieved by the order of the assessing officer, the a....
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.... it was wholly erroneous on the part of the assessing officer to make the addition on account of deduction claimed by the assessee under section 80P(2) (d) of the Act, as it was not the subject matter of reasons recorded by the assessing officer. The assessing officer recorded the reasons that assessee has made cash withdrawals to the tune of Rs. 2,87,70,000/- from the account of the Junagadh Jilla Sahakari Bank Limited during the year under consideration. The source of the amount out of which the cash transaction have been made remains unexplained, as the assessee has not filed return of income, for the year under consideration. The unexplained source of the amount out of which the cash transaction have been made and non-filing of return suggests within the meaning of section 147 r.w.s. 148 of the Act that income chargeable to tax has escaped assessment for the year under consideration. Therefore, we note that entire reasons were recorded to tax cash withdrawals to the tune of Rs. 2,87,70,000/-, however, assessing officer disallowed the deduction under section 80P(2)(d) of the Act of Rs. 4,64,183/-, which was not mentioned in the reasons recorded by the assessing officer. Hence, r....