2026 (6) TMI 473

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....Assessment Order dated 06.03.2024 passed u/s.147 r.w.s.144B of the Act. 2. Brief facts of the case are that the assessee is a Cooperative Society and has not filed the return of income for A.Y. 2018-19. Based on the information available on Insight portal suggesting that income chargeable to tax has escaped assessment, case of the assessee reopened. Ld. Assessing Officer observed that assessee has made cash deposits with State Bank of India amounting to Rs. 1,28,63,758/-. In response to notice u/s.148 of the Act, assessee filed the return of income on 17.06.2022 declaring Nil income and claimed deduction of Rs. 77,67,33/- u/s.80P(2)(a)(i). Ld. Assessing Officer invoking section 80AC of the Act denied the deduction claimed by the assessee....

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....of Mavilayi Service Co-operative Bank Ltd., Karnataka State Co-operative Apex Bank, and Mehsana District Co-operative Bank pertain to the meaning of "attributable to banking business," not to the statutory bar created by section 80AC. Thus, the appellant's reliance on those decisions is entirely misplaced. Since the return was not filed under section 139(1), the Assessing Officer rightly disallowed the claim. The ground is devoid of merit and stands dismissed." 3. Dissatisfied assessee is now in appeal before this Tribunal assailing the impugned order passed by ld.CIT(A). 4. The assessee has raised various legal issues as well as grounds challenging the disallowance of deduction u/s.80P(2)(a)(i) of the act. 5 Grounds of appeal ....

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....sessee furnished the return in compliance to the notice. In the reassessment proceedings, assessee submitted all the details to explain the source of cash deposits in State Bank of India to the satisfaction of the Assessing Officer. Ld. Assessing Officer has not made any addition on account of alleged unexplained cash deposits in the bank account. However, ld. Assessing Officer has disallowed the deduction u/s.80P(2)(a)(i) of the Act for not furnishing the regular return. It is pertinent to note that the reassessment proceedings have been initiated to examine the escapement of income on account of cash deposit in the bank account. The assessee has satisfied the Assessing Officer with all the details and ld. Assessing Officer has not made an....