TaxTMI 
TaxTMI 
2026 (4) TMI 466
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....2025 and thereafter, it was extended to 10.11.2025. Thus, the delay of 8 days in filing the appeal is neither intentional nor wilful but because of the reasons of preoccupation of the Chartered Accountant with tax audits which is beyond the control of the assessee. Hence, the learned Authorised Representative of the Assessee has pleaded that delay of 8 days in filing the present appeal be condoned. 3. On the other hand, the learned DR has not seriously objected to the condonation of delay of 8 days in filing the present appeal. 4. I have considered the submissions of the learned Authorised Representative of the Assessee as well as learned DR and carefully perused the reasons explained by the assessee in the petition for condonation of delay and the affidavit of the Secretary of the assessee society. The limitation for filing the appeal was expiring in the month of October 2025 which is also the due date of filing the tax audit reports and therefore, I find the reasons explained by the assessee as 'sufficient cause' for the delay of 8 days in filing the present appeal before the Tribunal. Accordingly, the delay of 8 days in filing the appeal is condoned. 5. The assessee has....
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....he notice u/s. 148 of the Act dated 31-03-2022 issued by the Jurisdictional Assessing Officer (JAO) for the AY 2018-19 is invalid in law in view of the decision of the honourable jurisdictional High Court of Telangana in the case of (i) Kankanala Ravindra Reddy vide WP 25903/2022 reported in reported in [2023] 22 ITR-OL 728 (Telangana) & [2023] 156 taxmann.com 178 (Telangana) [14-09- 2023] and (ii) Kotha Kanthaiah in W.P. no: 344 of 2025 vide order dated 24.02.2025, and also (iii) the Honourable Bombay High Court in the case of Hexaware Technologies Ltd. v. ACIT [2024] 464 ITR 430 (Bombay) [03-05-2024]; wherein it has been held that as per the amended provisions, w.e.f. 1.4.2021 notices u/s 148 of the Act can be only given by the Officers of the faceless assessment unit, and as such the notice u/s 148 of the Act issued by the JAO, being the Assistant Commissioner of Income-tax, Circle-6(1), Hyderabad is without jurisdiction. Hence, the learned CIT(A) erred by confirming the income determined/additions made by the learned A.O. by way of an invalid assessment, which needs to be deleted. 6. On the facts and in the circumstances of the case, the learned CIT(A) erred by upholdi....
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....'ble Supreme Court / Hon'ble High Court. Accordingly, this issue raised in ground nos.3 to 5 is kept open. 9. Ground nos.6 and 7 is regarding the disallowance of expenditure of Rs. 3,40,494/- against the interest income of the assessee society. 10. The assessee is a Cooperative Housing Society and was formed with the object of construction of houses for the members of the assessee society who are the employees of the power sector of the combined State of Andhra Pradesh. The assessee did not file any return of income u/sec.139 of the Act. On the basis of the information received regarding the interest income received by the assessee, the Assessing Officer reopened the assessment by issuing notice u/sec.148 of the Act dated 31.03.2021. In response to the said notice, the assessee filed its return of income declaring total income of Rs. 30,92,722/-. During the assessment proceedings, the Assessing Officer noted that the assessee has claimed deduction of Rs. 3,40,494/- against the interest income of Rs. 34,33,216/-. Accordingly, the Assessing Officer issued show cause notice to the assessee regarding the allowability of the said claim of deduction with supporting evidence. In res....
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....the establishment of the society and to discharge the statutory obligation of holding Annual General Body meeting, election as well as watch and ward of the asset and properties of the society. These are general administrative expenses which are deductible against the only income of the assessee society from interest on deposits and therefore, the assessee has declared the correct income. The accounts of the assessee are audited by the statutory Auditor. Therefore, the expenditure incurred by the assessee for general administration as well as the statutory compliance are allowable. In support of his contention, he has relied upon decision of ITAT, Ahmedabad in the case of The Venus Parkland Co-Op Housing Service Society Ltd., vs. ITO, Ward-3(3)(5), Ahmedabad in ITA.No.1039/Ahd./2023, Order dated 07.08.2024. 12. On the other hand, the learned DR has submitted that all these expenses claimed by the assessee are not incurred for earning the interest income in question which was declared by the assessee as income from other sources. Therefore, the claim of the assessee is not allowable as per the provisions of sec.57 of the Act. He has referred to the finding of the Assessing Office....
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.... to the interest income. There is no dispute that these expenses claimed by the assessee were incurred towards the establishment of the assessee society and keeping the assessee society in existence and alive by holding elections and General Body meetings in compliance with the Cooperative Societies Act. Further, since the expenses are incurred towards the establishment of the assessee society, therefore, theses expenses are not incurred for any other purpose than keeping the assessee society alive and to work towards objects and purpose of the assessee society of making available the housing accommodation to its members. Even otherwise, these expenses are considered as incurred towards the business activity of the assessee society, then, the income from the business of the assessee society would be net loss of Rs. 3,40,494/- and as per the provisions of sec.71 of the Act, the same is eligible to set off against the income of any other head including the income from interest. Accordingly, I find substance in the assessee's claim that only the net and real income has to be assessed to tax. The Ahmedabad Bench of the Tribunal in the case of The Venus Parkland Co-Op Housing Service So....
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....ciaries. The contributors to the common fund must be entitled to participate in the surplus and the participators in the surplus are contributors to the common fund. The law envisages a complete identity between the contributors and the participants in this sense. The principle postulates that what is returned is contributed by a member. Any surplus in the common fund shall therefore not constitute income but will only be an increase in the common fund meant to meet sudden eventualities. A common feature of mutual organizations in general can be stated to be that the participants usually do not have property rights to their share in the common fund, nor can they sell their share. Cessation from membership would result in the loss of right to participate without receiving a financial benefit from the cessation of the membership." 7.1. Respectfully following the judicial precedents, the Ground Nos. 1,2,4,5 and 6 raised by the assessee are allowed in favour of the assessee. Therefore the addition on account of interest income earned on fixed deposits from Banks and rental income earned by the Society are eligible to set off of maintenance expenses." 13.2. Accordingly, in t....
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....Accordingly, the Assessing Officer is directed to verify this claim of the assessee and then allow the same. 18. In the result, appeal of the Assessee is partly allowed. Order pronounced in the open Court on 27.02.2026. ============= Document 1 GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT 5 Computation Sheet General Details PAN AAAAV5182H Assessment Year 2018-19 Name VIDYUT EMPLOYEES CO OPERATIVE HOUSINGSOCIETY Address 6-3-349/24 ,ROAD NUMBER 1 BANJARA HILLS HYDERABAD 500034 ,Telangana India Residential Status Resident Order Section 147 DIN & Document Number ITBA/AST/S/185/202 2-23/1050675876(1) Order Date 13/03/2023 SI. No. Reporting Heads Amount as per Current Order (in Rs.) HEADS OF INCOME 1. INCOME FROM HOUSE PROPERTY 0 2. INCOME FROM BUSINESS OR PROFESSION 3,40,494 3. INCOME FROM CAPITAL GAINS 0 4. INCOME FROM OTHER SOURCES 30,92,722 5. ADJUSTMENTS OF CURRENT YEAR LOSSES 0 6. TOTAL ( AFTER INTRA HEAD ADJUSTMENT) 6-(1+2+3+4)-5 34.33.216 7. LOSSES OF CURRENT YEAR SETOFF AGAINST 6 C 8. BROUGHT FORWARD LOSSESS SET OFF AGAINST 6 0 9. GROSS TOTAL INCOME (INCLUDING SPECIAL INCOME) 9=6-(7+8) 34,33,216 ....