2026 (3) TMI 1183

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....grounds of appeal. However, for the sake of brevity and convenience, we are not inclined to reproduce the same here. The grounds raised by the assessee are interconnected and pertain to the deduction claimed u/s 80P of the Act. 3. The relevant facts are that the assessee, a co-operative society, failed to file the return of income for the captioned AY. The AO had information that the assessee had deposited total cash of Rs. 2,07,57,000 (including 14,70,000 during demonetisation period) in the bank account maintained with the bank. Therefore, the assessee was asked to furnish the return of income in response to the notice issued u/s 142(1) of the Act. However, the assessee did not file the return of income. Accordingly, the assessment was....

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....f deposits of old and new currency notes since the pay-in slip challans were retained by the bank at the time of depositing the cash. 5.1 The assessee also submitted that the AO had debited reserves and provisions amounting to Rs. 13,10,727 and reduced the profit, treating the same as business income on the ground that it was not an allowable expense. As per the assessee, such addition made by the AO should be allowed as deduction under section 80P of the Act as a whole. However, the Ld. CIT(A), on perusal of the objects & byelaws of the society, observed that the assessee is not a credit co-operative society engaged in the business of banking or in providing credit facilities to its members. Accordingly, the Ld. CIT(A) held that deducti....

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....the Act. It was further argued that the assessee had not produced sufficient evidence to establish eligibility for the deduction claimed. 9. We have heard the rival submissions of both the parties and perused the materials available on record including the paper book filed by the assessee. On perusal of the paper book, we notice that the registration documents and byelaws of the society have been placed on record. At page 50 of the paper book, clause 4 point 11 clearly provides that one of the objectives of the society is to provide credit facilities to its members. However, both the AO and the Ld. CIT(A) denied the deduction u/s 80P(2)(a)(i) of the Act merely on the basis of the name of the society and by referring to certain objects re....