2026 (6) TMI 1274

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....143(3) read with sections 143(3A) and 143(3B) of the Income Tax Act, 1961[ the Act ]. 2. The National Assessment Centre denied the assessee deduction under section 80P(2)(a)(i) of the Act in respect of interest of Rs.44,53,203 earnedon deposits or investments with cooperative banks, treated the same as income from other sources, and assessed the total income at Rs.44,75,293 as against the returned income of Rs.22,090. 3. Aggrieved, the assessee is in appeal before us. In ground No. 2, it mainly contends that the interest earned on investments with cooperative banks is attributable to the profits and gains of its business of providing credit facilities to its members and is therefore deductible under section 80P(2)(a)(i) of the Act. Th....

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....that the assessee had not shown sufficient cause for the delay. He therefore contended that the appeal should not be admitted. 8. We have considered the rival submissions. The delay was caused by Mr. Venugopal Mohan Hegde, the assessee's accountant, who was familiar with the facts of the case and was entrusted with filing the appeal. During the relevant period, he was handling assessment proceedings and several other assignments and, due to oversight and workload, failed to notice the appellate order. This is not a case where the assessee did not receive the appellate order; rather, after receipt, the employee responsible for filing the appeal failed to act in time for the reasons stated above. We find the explanation shows sufficientcau....

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.... 12. Briefly stated, the assessee is a cooperative society registered on 30 January 1980 under the Karnataka Societies Act, 1959, with the principal object of providing credit facilities to its members. It earned interest of Rs.4,53,203 from deposits with cooperative banks, including Kanara District Central Cooperative Bank Ltd. and Punjab and Maharashtra Cooperative Bank Ltd. The assessee claimed that this interest formed part of the profits attributable to its business of providing credit facilities to members. The Assessing Officer, relying on the decision of the Hon'ble Supreme Court reported in 322 ITR 283 and the decision of the Hon'ble Karnataka High Court reported in 395 ITR 611, treated the income as income from other sources and....