2026 (8) TMI 703

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....(for short 'the Act') seeking to reopen the assessment of the petitioner for the Assessment Year (for short 'A.Y.') 2014-15. 2. The petitioner is a co-operative Bank which filed its return of income for A.Y. 2014-15. During the year under consideration, the petitioner earned certain interest income which included "interest income earned from co-operative banks". The petitioner filed return of income for the year under consideration on 17/11/2014 declaring total income at Rs. NIL after claiming exemption of Rs. 28,91,29,255/- under Section 80P(2) of the Act. 2.1. The case of the petitioner for the year under consideration was selected for scrutiny assessment. The then Assessing Officer, vide show cause notice dated 21/11/2016, called u....

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....ined at Rs. 11,61,52,425/-. 2.3. The petitioner challenged the assessment order before the Commissioner of Income Tax (Appeals) who, vide order dated 17/02/2018, dismissed the Appeal. At this stage, it is clarified that no further Appeal has been preferred by the petitioner against the appellate order dated 17/02/2018 passed by the First Appellate Authority. 2.4. Thereafter, the respondent issued the impugned notice dated 16/12/2019 under Section 148 of the Act seeking to reopen the case of the petitioner for the year under consideration. 2.5. The petitioner filed return of income in response to the impugned notice issued under Section 148 of the Act on 23/01/2020 and brought the said fact to the notice of the respondent vide lette....

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....er dated 18/02/2020, raised objections against reopening wherein various factual as well as legal submissions were made. However, the respondent, vide order dated 04/03/2020, disposed off such objections raised by the petitioner against reopening and, inter alia, held that the action of reopening is justified in the eye of law. 3. Learned advocate Ms. Vaibhavi K. Parikh at the outset, while placing reliance on the judgment of this Court in the case of Diamond Jubilee Cooperative Bank Limited vs. Union of India [2025] 181 taxmann.com 177 (Gujarat) has submitted that the reopening of the assessment is required to be quashed and set aside, since the deduction under Section 80P(2)(d) of the Act was available to the cooperative societies on i....

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....opinion by the Assessing Officer. 7. It is not in dispute that the petitioner filed the return of income on 17/11/2014 which was subjected to scrutiny assessment, and ultimately, after the Assessing Officer found the explanation tendered by the petitioner with regard to the exempt income on interest under Section 80P(2)(d) of the Act satisfactory, the scrutiny Assessment Order under Section 143(3) of the Act was passed on 02/12/2016. The Assessing Officer made the two additions; (I) Rs.11,28,91,418/- being an addition under Section 80P(2)(d) of the Act in respect of interest income from nationalized Banks, and (II) Rs.32,61,000/- being an addition under Section 80P(2)(c) of the Act in respect of miscellaneous income and....