Linking RBI notification violation to Section 68 unjustified as nature & source explained: ITAT Ahmedabad

ITO Vs Shivoham Sagar Co-op. Credit Society Ltd (ITAT Ahmedabad) ITAT Ahmedabad held that there is no basis for linking assessee’s alleged violation of RBI notification dated 8th November 2016 to section 68 of the Income Tax Act, when the nature and source is explained. Facts- The assessee is a registered Co­operative Society under the Gujarat Co-operative Societies Act. AO observed that the assessee has claimed deduction u/s.80P relating to interest from Nationalized Banks. Therefore, he disallowed the deduction to the extent of Rs.4,79,001/- The AO also observed that the assessee had depo...