TaxTMI 
TaxTMI 
2026 (2) TMI 1043
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....in law. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need arise. Total tax effect Rs. 49,80,410/-" 3. The assessee filed return of income on 30-10-2018 for assessment year 2018-19 declaring total income of Rs. 0/-. The assessment order u/s. 143(3) r.w.s. section 143(3A) and 143(3B) of the Income Tax act, 1961 was passed on 02-04- 2021 on assessed income of Rs. 0/-. The assessee earned interest totaling to Rs. 1,44,00,920/- from banks other than co-operative society bank, which was not eligible for claiming deduction u/s. 80P(2)(d) of the Act. The Pr. CIT therefore found that the assessment order is erroneous and prejudicial to the interest of the Revenue. Accordingly....
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....ficer to pass fresh assessment order and set aside the order passed u/s. 143(3) r.w.s. 143(3A) and 143(3B) of the Act. 4. Being aggrieved by the order passed u/s. 263 of the Act by the Pr. CIT, the assessee filed appeal before us. 5. The ld. A.R. submitted that the assessee is a registered co-operative society and has given all the details to the Assessing Officer related to the investment amount mentioned in the balance sheet i.e. Rs. 40 lacs in non-depreciable assets (RKVY) and Rs. 565.80 lacs in the subsidy from RKVY (on lined delinting) appearing in liability side. The ld. A.R. submitted that funds would be provided to the States as 'grant' by the Central Government and the assessee federation which is established in 1975 is eligi....
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....ons: 1. CIT vs. Nirma Chemicals Works (P.) Ltd. (2009) 182 taxman 183 (Gujarat) 2. CIT vs. Dhaneswar Rath Institute of Engineering & Medical Sciences (2013) 147 taxmann.com 469 (Orissa) 3. CIT vs. Kohinoor Foods Ltd. (2019) 414 ITR 249 (Del) 4. CIT vs. Escort Ltd. (2011) 198 Taxman 324 (Delhi) 5. Pr. CIT, Surat-2 vs. Shreeji Prints (P.) Ltd. (2021) 130 taxman.com 294 (SC) 6. Pr. CIT vs. Asiatic Bearing Co. (2025) 172 taxmann.com 646 (Gujarat) 7. CIT, Delhi-IV vs. M/s. Dalmia Promoters & Devels P. Ltd. Civil Appeal No. 74/2007 dated 16 Sep,2015 The ld. A.R. further submitted that the notice was issued u/s. 263 was on the basis of the decision of Hon'ble Supreme Court in case o....
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....ord. It is pertinent to note that the assessee federation is not denying the fact that the funds has been used as a working capital for operation of purchase. Once, the whole purchase process has been completed, the assessee has to pay back the funds to the Gujarat Government. During the year, the assessee has made FDR for short term period in respect of ideal fund which remained un-used and earned interest on the same. Thus, this fund was allocated by the State Government to the federation which is termed as a revolving fund to the assessee. The said fund was remaining ideal, it cannot be treated the fund from the members of the society but it is the fund from the Government which is a matter of fact. This aspect was never examined by the ....