TaxTMI 
TaxTMI 
2025 (3) TMI 1732
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.... Anantapur Co-operative Central Bank Limited during the year under consideration. The assessee did not furnish any explanation before the Ld. AO u/s.148A(b) of the Income Tax Act, 1961 ("the Act"). Consequently, the Ld. AO after passing an order u/s.148A(d) of the Act issued notice u/s.148 of the Act to the assessee on 21.03.2023. In response to the notice u/s.148 of the Act, the assessee filed its ROI on 19.04.2023 declaring total income at Rs. Nil by claiming deduction u/s.80P of the Act at Rs. 5,50,728/-. The notice u/s.143(2) of the Act was issued on 23.08.2023 by the Ld. AO to the assessee. After considering the submission of the assessee, the Ld. AO completed the assessment u/s.147 r.w.s. 144B of the Act on 17.01.2024 determining the total income at Rs. 68,82,509/-. 3. Aggrieved with the order of Ld. AO, the assessee filed appeal before Ld. CIT(A), who partly allowed the appeal of the assessee. 4. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before us. The Learned Authorised Representative ("Ld. AR") submitted that, three issues are involved out of their grounds of appeal as under : (i) Addition of Rs. 62,82,240/- u/s.69A of the Act on acco....
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.... plea of Ld. AR be rejected in view of the sufficient opportunities provided to the assessee before deciding the matter by the authorities below. 4.3 We have heard the rival contentions and also gone through the record in the light of the submissions made by either side. It is seen from the record that the Ld. AO has not verified the details / evidences for balance period of 9 months. Now, the assessee is ready to furnish the necessary details / evidences in support of his case. However, the assessee is having all the details / evidences related to cash deposit of Rs. 62,82,240/-. Be that as it may, now that the assessee is ready to produce the balance of 9 months all such documentary evidence in support of his contentions and get the matter disposed of on merits. The highest that would happen by allowing an opportunity to the assessee is that a cause would be decided on merits. In the interest of justice, we are of the view that fresh opportunity should be given to the assessee and, accordingly, we set aside the issue to the file of the Ld. AO for fresh adjudication on merits, after affording the opportunity of hearing to the assessee. 5. As far as the second issue regarding....
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.... the Act and would be eligible for deduction. 7. In the cases of Ashoka Palace Co-op. Hsg. Soc. Ltd., and Hilla Heights Co-operative Housing Society Limited (supra), the claim for deduction under section 80P(2)(d) of the Act was disallowed through intimation under section 143(1) of the Act and the rectification application filed by the assessee under section 154 of the Act was rejected. Appeal filed against the order under section 154 of the Act was also rejected on the ground that the disallowance under section 80P(2) of the Act in the original assessment order under section 143(1) of the Act, but not under section 154 of the Act and, therefore, the assessee cannot challenge the order under section 154 of the Act, directly without challenging the order under section 143(1) of the Act. 8. In the case of Hilla Heights Co-operative Housing Society Limited (supra), since the disallowance was made under section 143(1) of the Act assessee filed a rectification application before Centralized Processing Centre, Bangalore, however, the same was denied without giving any proper reasons and assessee filed the appeal before the learned CIT(A) and learned CIT(A) did not decid....
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....operative Rural Bank Ltd (supra), it is abundantly clear that if original source of funds, which is invested in nationalized bank is from the activities listed in (i) to (vii) of clause (a) of Section 80P(2), then only the interest received from nationalized bank shall be treated as income attributable to the activities listed in sub-section (i) to (vii) of clause (a) of Section 80P(2) and accordingly, will be eligible for deduction u/s 80P(2)(a) of the Act. However, in the case of the assessee, the funds deposited in the nationalized bank are not out of surplus funds from the activities listed in (1)(2) of (vii) of clause (a) of Section 80P(2) of the Act. Further, the assessee has claimed deduction u/s 80P(2)(d) and not under Section 80P(2)(a) of the Act. Therefore, reliance made by the Ld.AR in the case of co-ordinate Bench of the Tribunal(Supra) and Hon'ble High Court's decision in the case of The Vavveru Co-operative Rural Bank Ltd. (supra) are not applicable in the present case. 10. Further, for the sake of clarity, it is crucial to reproduce here the provisions of Section 80P(2)(d) of the Act, which is to the following effect : "In respect of any income ....