Basaveswar Co-Op Credit Society Niyamit Vs ITO (ITAT Panaji)
Section 80P Allowed Despite Late Return—ITAT Says 80AC Not Triggered for AY 2017-18- Tribunal Saves 80P Claim; Remands u/s68 Cash Deposit Issue for Re-Examination
Assessee, a credit cooperative society, had made cash deposits during F.Y.2016-17. Since no return was filed, AO issued notices u/s142(1) & finally completed assessment u/s144, treating Rs.12,00,000/- as unexplained cash deposits u/s68 on the ground that Assessee failed to prove source of cash during demonetisation. AO further denied deduction u/s80P of Rs.4,06,475/- applying s.80AC, alleging non-filing of return within due date u/s139(1).
CIT(A)/NFAC dismissed the appeal without properly appreciating the evidences filed.
Before Tribunal, Assessee submitted that complete member details, bank statements, Aadhar/PAN of depositors & explanations were furnished but not considered. Tribunal held that CIT(A) failed to examine documents & facts, thereby violating principles of natural justice. Hence, the issue of addition u/s68 was restored to AO for fresh verification & adjudication with due opportunity to Assessee.
On the issue of deduction u/s80P, Tribunal held that s.80AC (as applicable to cooperative societies) operates only from AY 2018-19 & not for AY 2017-18. Relying on Prathamika Krishi Patina Sahakara Sangha Ltd (142 taxmann.com 405) & Panaji Bench decision in Omkar Urban Cooperative Credit Society, Tribunal directed AO to allow deduction u/s80P in full.
