JAMBAD COLLIERY EMPLOYEES COOPERATIVE CREDIT SOCIETY LIMITED,DURGAPUR vs. ITO, WARD 2(1),, DURGAPUR

PDF · subscribers
ITA 737/KOL/2026Status: DisposedITAT Kolkata26 October 2026AY 2018-20194 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the additional ground of appeal, raising a purely legal issue with all facts available on record, was admissible. The Tribunal found that the Assessing Officer's addition of Rs. 51,94,684/- by disallowing the deduction under Section 80P(2)(a)(iv) was not sustainable in law. This was because the basis for reopening the assessment, as stated in the show-cause notice under Section 148A(b) and the subsequent order under Section 148A(d), was cash deposits amounting to Rs. 16,56,183/-. The Assessing Officer did not make any addition in respect of these original grounds for reopening. Consequently, the Tribunal set aside the order of the CIT(A) and directed the Assessing Officer to delete the addition. The ratio decidendi is that an addition made on grounds different from those forming the basis of reopening under Section 147/148A is invalid.

What were the facts?

The assessee, Jambad Colliery Employees Cooperative Credit Society Limited, is in appeal against the order of the CIT(A) dated 01.12.2025 for Assessment Year 2018-19. The reassessment proceedings were initiated based on information regarding cash deposits in bank accounts and withdrawals during FY 2017-18. A show-cause notice under section 148A(b) was issued on 08.03.2022, citing cash deposits of Rs. 16,56,183/- as income that had escaped assessment. An order under section 148A(d) was passed on 31.03.2022, reiterating the same grounds. Subsequently, the Assessing Officer disallowed a deduction claimed by the assessee under Section 80P(2)(a)(iv) amounting to Rs. 51,94,684/-, stating the assessee was not eligible for interest earned from deposits with a Co-operative Bank. The assessee had not filed a return of income under section 139.

What were the issues?

1. Whether the addition of Rs. 51,94,684/- made by disallowing the claim of deduction under Section 80P of the Income Tax Act, 1961, is liable to be deleted, considering that this issue was not the basis for reopening the assessment as per the show-cause notice issued under Section 148A(b) and the order passed under Section 148A(d)? (Question of law and mixed fact and law, turning on Section 147 and Section 148A). Assessee's contention: The addition made by disallowing the Section 80P deduction is unsustainable because the reopening was based on cash deposits, not on the eligibility for Section 80P deduction. The assessee relied on the decisions in Jute Corporation of India Ltd. vs. CIT, National Thermal Power Co. Ltd. v. CIT, and PCIT vs. Britannia Industries Ltd. Revenue's contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 80P,Section 148A,Section 147,Section 139,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

For Appellant: Shri Amit Agarwal, AR
For Respondent: Shri Ambrish Mishra, Sr. DR
Hearing: 18.08.2026Pronounced: 26.10.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER

ITA No.737/KOL/2026 (A.Y: 2018-19)

Jambad Colliery Employees Vs. ITO, Ward-2(1), Durgapur Cooperative Credit Society Aaykar Bhawan (Annexe), Limited Aptech Building, City Centre, Bahula, Jambad Colliery Porasia, Durgapur, West Bengal-713216 Durgapur, West Burdwan-713214 (Appellant) (Respondent) PAN No. AAAAJ5671R Assessee by : Shri Amit Agarwal, AR Revenue by : Shri Ambrish Mishra, Sr. DR Date of hearing: 18.08.2026 Date of pronouncement: 26.10.2026

O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER:

This is an appeal preferred by the assessee against the order of the Commissioner of Income Tax (Appeal)(hereinafter referred to as the “Ld. CIT(A)”] dated 01.12.2025 for the AY 2018-19.

2.

At the time of hearing, the Learned Counsel for the Assessee raised additional Grounds of Appeal, which is extracted below:-

“i. That the addition of the sum of Rs.51,94,684 made, by disallowing the claim of deduction u/s 80P of the Act, in the reassessment order dated 20the March 2023 is liable to be deleted in as much as the said issue of addition was not the basis of reopening as contained in the information provide along with show cause notice

4.

We have heard the rival submissions and perused the materials available on record. We find that, in this case, the show-cause notice u/s 148A(b) of the Act was issued on 08.03.2022, a copy of which is available at Page No. 1 of the Paper Book. We note from the perusal of the said show-cause notice that the case of the assessee was reopened for cash deposits in different bank accounts maintained with The Burdwan Central Cooperative Bank Limited, Ukhra Branch, during F.Y. 2017-18. Further, the assessee also withdrew Rs. 2,30,54,773/- from the savings bank account during the said year. We have noted that the Assessee had not filed any return of income. Therefore, the Assessing Officer concluded that the amount

5.

In the result, Appeal of the Assessee is allowed.

Order pronounced on 26.10.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 26.10.2026 Deepak Prakash, P.S Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT 5. Guard file.

//TRUE COPY// BY ORDER,

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →