GIC EMPL COOP THRIFT AND CREDIT SOCIETY LTD.,CHENNAI vs. ITO, NON COP. WARD-3(1), CHENNAI

to 467/Chny/Chny/2023 :- 2 -: Since, identical issue is involved, we proceed to dispose-off the same through a common order under appeal No. ITA 464 / Chny / 2023.

The Registry has noted a delay of 08 days in the appeals. The Assessee filed a petition seeking condonation of delay citing the reason that the health of the authorized person was not in order and he had to be admitted in the hospital due to adverse medical conditions. Considering the period of delay, the delay is condoned and all the appeals are admitted for adjudication on merits.

The facts of the case are that the assessee is a Multi-State Cooperative society registered under the Cooperative Societies Act and is engaged in providing credit facilities to its members. The assessee failed to file its return of income for the relevant assessment year. Notice u/s 148 of the Act was issued to the society on the basis of the information available with the Department that the assessee made huge deposits in the bank and earned interest income. As per information the assessee deposited cash of Rs. 2,86,00,000/- in SB account and earned interest of Rs. 2.06 lakhs. In response, the assessee filed its return of income for AY 2013-14 on 26-04-2021 declaring gross total income of Rs. 4,77,59,789/- and made a claim for deduction u/s 80P. The Ld. AO rejected the claim of the assessee and to 467/Chny/Chny/2023 :- 3 -: completed the assessment vide order dated 26-03-2022 adding the amount of Rs. 4,77,59,789/- to total income of the assessee. The Ld. AO observed that the assessee was functioning like a cooperative bank and therefore, it cannot claim deduction u/s 80P of the Act.

Being aggrieved, assessee filed first appeal before Ld. CIT(A) without any success. The Ld. CIT(A), vide impugned order dated 02- 02-2023, observed that the assessee failed to produce accounting document or audit report, details of interest paid or received from members. The basic details like list of members and yearly transactions were not furnished. Therefore, the assessment was confirmed against which the assessee is in further appeal before us.

Heard the representatives of both the parties and perused the material on record. The Ld. AR made prayer for remand of the matter considering the fact that requisite details could not be filed. The ld. AR submitted that the assessee is not a cooperative bank and therefore, it is eligible for deduction u/s 80P of the Act. No license is obtained by the assessee from the Reserve Bank of India for carrying on banking business. The Ld. AR produced a paper book for consideration. Per contra, the Ld. DR submitted that the assessee failed to file return of income. The Ld. DR further submitted that the paper book containing the materials/documents were not submitted before the lower authorities. Therefore, Ld. DR pleaded for dismissal of appeals. to 467/Chny/Chny/2023 :- 4 -: 6. We have carefully considered the submissions of the parties. We are of the considered opinion that the paper book containing the materials / documents should be considered by the lower authorities first. The Ld. CIT(A) in his order recorded that the assessee did not file relevant materials so as to substantiate its claim for deduction under section 80P. The Ld. AR sought for remand of the matter so that the assessee can produce the relevant documents/materials and substantiate its claim before the lower authority. Therefore, accepting the plea of Ld. AR, the issue of assessment, in all the years, is restored back to the file of Ld. AO for denovo assessment with a direction to the assessee to substantiate its claim. Ordered accordingly. 7. In the result, all the appeals stand allowed for statistical purposes. Order pronounced on 30th August, 2023.