SHRI EKVIRADEVI GRAMIN BIGARSHETI SAHAKARI PATSANSTHA MARYADIT,ALIBAG vs. ITO, WD-3, PANVEL

The Ld. CIT(A)-NFAC erred in not admitting additional ground of appeal, regarding invalidity of notice issued u/s 148 on 07/04/2022 with approval obtained from incorrect authority as provided u/s 151 of the Act, by actually accepting the same on merits. 3. The Ld. CIT(A)-NFAC erred in not declaring the impugned assessment order as bad in law since Notice u/s 148 dated 07/04/2022 was issued for the reasons of cash deposited and Time Deposit purchase into the Bank, but addition of Rs.7,06,146/- was made by way of disallowance of deduction u/s 80P(2)(a)(i). 4. The alleged escaped income did not exceed Rs.50,00,000/-, as evident from the impugned Assessment Order and therefore Notice u/s 148 and subsequent proceedings are time barred in terms of section 149 of the Act. 5. The Ld. CIT(A)-NFAC erred in confirming addition of Rs.7,06,146/- by way of disallowance u/s 80P(2)(a)(i) which was claimed through Return filed in response to Notice u/s 148 dated 07/04/2022, i.e. during the reassessment proceedings. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.

After due analysis of the relevant material available on record and verification of the same from various departmental different database portals, undersigned is possessing information which suggests that the income corresponding to the above tabulated financial transactions has escaped assessment as the assessee had not filed return of income for the year under consideration and therefore, cash deposits and time deposits in the bank accounts maintained in the Bank are remained undisclosed. 4. Thereafter, following due procedure as provided by Section 148A of the Act, a show-cause notice u/s 148A(b) was issued on 20.03.2022 after obtaining prior approval of the specified authority u/ 151 of the Act. The assessee was given opportunity of being heard by issuing a notice to show-cause on or before 27.03.2022, as to why a notice under section 148 of the Act shall not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment, in his case for the relevant assessment year. 5. In response to which assessee filed the submission and stated that they are cooperative society and income of their activity is mainlly from resident people and fishermen, it was further stated that they couldn't received their audit report on 13.04.2019 when the return of income was barred. However, the contention of the assessee can't be accepted as the filing or return of income and getting their account audited was responsibilty of the assessee. Therefore, the undersigned proceeded to decide on the material available on the record, whether or not it is a fit case to issue a notice u/s 148 of the Act by passing this order. 6. The information and material available on record has been analyzed and the following observations are made:- 1. The assessee has not filed his return of income for the year under consideration. 1. The assessee has made cash deposits of Rs.91,86,100/- in The RDCC Urban Bank and time deposits of Rs.55,50,000/- The assessee has not filed his return of income for the relevant assessment year. Therefore the cash deposits & time deposits are remained undisclosed. Therefore, this suggests within the meaning of section 147 rws 148 of the Act that income chargeable to tax has escaped assessment for the year under consideration. 7. Therefore, based on the above cogent material available on record with this office, income to the tune of Rs. 1,47,36,100/- has escaped assessment for the year under consideration. 8. In this case return of income has not been filed for the year under consideration and, no regular assessment was made. Further, the requirements to initiate proceedings u/s. 147 of Income Tax Act, 1961 as provided by sections 148A rws 148 of the Act have been duly followed and the prior approval of specified authority as provided u/s 151 of the Act have been taken during the different steps of the procedure entailed by section 148A of the Act. In view of the above, provisions of section 147 are applicable to facts of this case and on the basis of information available with this office. In this case cash and time deposits remained undisclosed. Therefore, it is held to be a case where income chargeable to tax has escaped assessment and therefore it is a fit case for issuance of notice u/s. 148 of the I.T.Act, 1961 for Assessment Year under consideration. 9. Necessary approval of specified authority as per provisions of section 151 of the Income Tax Act, 1961 has been obtained before passing this order.”