2026 (7) TMI 1407

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee filed a Return of Income declaring gross total income of Rs. 95.53 lakhs and claimed the entire amount as deduction u/s. 80P of the Income Tax Act, 1961 (in short "the Act"). Consequently, the taxable income became 'nil'. The case was taken up for scrutiny, and the AO has completed the assessment by making an addition of Rs. 95.53 lakhs. While completing the assessment, the AO held that the income earned by way of interest on deposits with Scheduled Banks and Co-operative Banks as "income from other sources" u/s. 56 of the Act and the same can't be treated as income from profits & gains of the business of the assessee. Hence, it was held that the assessee society is not entitled to deduction u/s. 80P of the Act. 2. Aggrieved ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e and above the order passed under section 143(3) of the IT Act r.w.s 144B is liable to be quashed in the interest of justice and fair play. 3. The main grievance of the assessee is that the assessee Society is in the business of providing credit facilities to its members since more than two decades and the assessee registered under the Registrar of Co-operative Societies and functionally working under the principles of mutuality and hence, they are rightly entitled for claim u/s. 80P of the Act. But this appeal was filed with a delay of '446' days and the primary reason mentioned by the Ld.AR of the assessee is that the case was entrusted to the Chartered Accountant of the assessee society, Shri B. Ashok who faced multiple health ailmen....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ence, appeal should be dismissed, argued by the Ld.DR. 5. After hearing both sides, the Bench decides to condone the delay in view of medical certificates filed by the assessee along with affidavit of the Chartered Accountant explaining the reasons in detail. Moreover, the Ld.CIT(A) has not passed the order adjudicating the merits raised in the grounds of appeal. There is no doubt that the delay occurred in filing of appeal before the Ld.CIT(A), but the reasons mentioned in the condonation petition should have been taken properly by the Ld.CIT(A) as there are corroborative evidences also. The Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra (HUF) reported in (2017) 297 CTR 614 (Bom.) where it was held that the ....