AI Drafter 
TaxTMI 
TaxTMI 
2026 (5) TMI 1470
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.... (1) Addition for unexplained cash deposit of Rs. 24,14,500/- during the demonetization period; and (2) Eligibility for deduction u/s. 80P of the Act for A.Y. 2017-18 in absence of having filed regular return of income u/s. 139(1) of the Act. 3. At the outset, ld. Counsel for the assessee submitted that the assessee society is running from past many years and regular cash deposits have been received by the assessee from its Members, details of which are placed at page 43 of the paper book and from A.Y. 2012-13 to A.Y. 2017-17 cash deposits received during each year are ranging from Rs. 1.34 crore to Rs. 2.01 crore. Copies of audited financial statements have also been placed on record and detail of cash received from various....
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....of all these details and concluded the proceedings partly allowing the assessee's appeal. 7. Before this Tribunal, two issues have been raised. First issue is regarding unexplained cash deposit at Rs. 24,14,500/-. From perusal of the paper book 43, I note that the receiving of cash deposit from Members is not a new feature for this year and the assessee has been consistently receiving cash deposits from its Members. Details indicate that from A.Y. 2012-13 to A.Y. 2016-17 yearly cash deposits in bank are approximately Rs. 1.34 crore Rs. 1.78 crore Rs. 1.57 crore Rs. 2.01 crore and Rs. 1.81 crore followed by cash deposit of Rs. 1.91 crore during the year under consideration. Apart from the impugned addition of Rs. 24,14,500/-, ld. Assessin....
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....n filed but the assessee has carried out the activity of a Cooperative Society, this Tribunal has been taking a consistent view that such deduction deserves to be allowed if the conditions for claiming deduction u/s. 80P of the Act are fulfilled. We take note of the decision of this Tribunal in the case of Rajya Rakhiv Police Karmachari Sahakari Patsanstha Maryadit Vs. ITO (supra) where similar issue has been decided in favour of the assessee allowing deduction u/s. 80P of the Act and the finding of this Tribunal reads as under : "8. We have heard the rival contentions and perused the record placed before us. So far as the legal issue raised vide Ground No.1 in the grounds of appeal is concerned, we find that the reason for carryin....
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....ent of income with regard to unexplained cash deposit. During the course of assessment proceedings, ld. AO was satisfied with the source of cash deposit and therefore if he intended to make addition on some other ground he was required to issue a fresh show cause notice u/s. 148. Since this exercise has not been carried out by the ld. AO the assessment order framed on 30.12.2019 is held to be bad in law and deserves to be quashed. Legal issue raised in Ground No.1 stands allowed. 9. Though we have dealt with the legal issue and have allowed the ground in favour of the assessee we still deem it proper to deal with merits of the case raised in Ground No.2 through which it has been contended that even if the assessee has not filed the....
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.... to its substitution by the Finance Act, 2018 w.e.f. 1-4-2018 reads as follows: "80AC. Deduction not to be allowed unless return furnished-Where in computing the total income of an assessee of the previous year relevant to the assessment year commencing on the 1st day of April, 2006 or any subsequent assessment year, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IC or section 80-ID or section 80-IE, no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139." He pointed out that the aforesaid provisions contemplate filing of return of income to claim deductions under ....