Jamboti Multipurpose Co-operative Society Ltd Vs PCIT (ITAT Panaji)
ITAT Panaji held that, in order to verify violation provisions of section 18(1) of the Karnataka Cooperative Societies (Amendment)Act 2014, AO is directed to verify list of all members of society and examine whether associate members exceeds 15% of total membership or not.
Facts- The assessee is a cooperative society registered under the Karnataka Co-Operative Societies Act 1959. Post completion of limited scrutiny assessment, Pr. CIT on perusal of the records and information found that the order passed by the AO is erroneous and prejudicial to the interest of the revenue and issued revision notice u/s. 263 of the Act. Pr.CIT is of the view that the number of associate members of the assessee society continued to be more than 15% of the total membership of the society for the relevant period and the assessee has violated the provisions of section 18(1) of the Karnataka Cooperative Societies (Amendment)Act 2014.
Conclusion- Held that we find the A.O has called for the list of all the members of the society during the relevant period and there is no examination and verification of the facts or findings by the A.O on the issue of associate members exceeding 15% of total membership in the assessment proceedings. Accordingly, the matter needs to be verified and reasons for claim should be justified and the assessing officer shall adjudicate a fresh on merits on the disputed issue and shall provide adequate opportunity of hearing to the assessee and the assessee should also cooperate in submitting the information. Accordingly, we do not find merits in the appeal filed by the assessee and is dismissed. In the result, the appeal filed by the assesse is dismissed.
