Arthbharti Nagari Sahakari Patsanstha Maryadit Vs ITO (ITAT Pune)
ITAT Pune held that approval of Principal Chief Commissioner of Income Tax [PCCIT] required for order passed under section 148A(d) of the Income Tax Act beyond three years from the end of assessment year. Here, order passed with approval of PCIT instead of PCCIT and hence order is liable to be quashed.
Facts- Assessee is a Co-operative Credit Society registered under Maharashtra Co-operative Societies Act, 1960. No return of Income was filed by the Assessee for A.Y.2018-19 u/s. 139(1) of the Act.
AO received information that Assessee has made huge cash deposits. Therefore, notice u/s. 148A of the Act was issued. AO passed an order u/s. 148A(d) of the Act, dated 06.04.2022 with the approval of Principal Commissioner of Income Tax. In the order u/s. 148A(d), the AO held that since Assessee has not filed KYC of its Members, List of Members etc., it is required to make verification of the facts of the case .It is a fit case for issuance of notice u/s. 148 of the Act.
Then, AO issued notice u/s. 148 of the Income Tax Act, dated 06.04.2022 with the approval of Principal Commissioner of Income Tax. AO passed an order under section 147 r.w.s. 144B of the Act on 08.03.2024. In the assessment order, AO has not made any addition regarding the cash deposits, however, AO as per Section 80AC, denied the Assessee deduction u/s. 80P(2)(a)(i) of the Act, on the ground that Assessee had not filed Return of Income u/s. 139(1) of the Act.
