ITAT Bangalore deleted addition made under section 69A of the Income Tax Act towards unexplained money after examining the cash withdrawn and cash deposit amounts, since cash withdrawn is more than cash deposit.
ITAT Bangalore held that hearing notices sent by CIT(A) was not received by the assessee since notices were sent to old auditor’s email ID. Thus, non-appearance was neither wilful nor wanton hence ex-parte order of CIT(A) set aside.
Considering the judgment of Alnavar Credit Souharda Co-op Ltd noted above the AO is directed to decide the issue afresh regarding the claim of deduction made by the assessee.
ITAT Bangalore directed authorities not to dismiss rectification application u/s. 154 on the ground of limitation as the assessee was erroneously misled to deposit taxes and it is settled law that no tax can be collected without authority of law.
ITAT Bangalore directs AO to reconsider 80P deduction after lower authorities overlooked Supreme Court precedents in Arjuna Souhardha Pathina Sahakari Niyamitha case.
It was held that assessee to provide concrete evidence establishing the genuineness of the cash deposits in accordance with CBDT Circular wherein the various instructions had been issued by CBDT dated 21.2.2017, 3.3.2017, 15.11.2017 & 9.8.2019.
Vide the present appeal, the assessee has challenged only two issues regarding disallowance of Rs. 1,99,291 towards motor car & Rs.29,345 on motor bikes; and adhoc disallowance towards salary, rent, machine charges & bonus.
ITAT Bangalore held that the co-operative societies providing credit facilities to its members is entitled to deduction u/s 80P(2)(a)(i) of the Income Tax Act. Thus, income earned on account of providing credit facilities is allowable as deduction u/s. 80P(2)(a)(i).
Assessee preferred an appeal before CIT(A) with a delay of about 133 days in filing the appeal. However, CIT(A) dismissed the appeal by not condoning the delay and without adjudicating the issues on merits. Being aggrieved, the present appeal is filed.
ITAT Bangalore in the case of cash deposit during demonetization period directed assessee to file KYC of the depositors and accordingly directed AO to verify the same and allow if found in order.
