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TMI Blog2014 (10) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... e factual finding of Ld. CIT(A) could not be controverted by the DR. Hence, we have to uphold these factual findings of Ld. CIT(A) In view of the above discussion and in view of the fact Ld. Departmental Representative could not controvert the factual recording made by the first appellate authority and as the assessee has filed all necessary evidence before the revenue authorities, we uphold the order of first appellate authority and dismiss this ground of revenue. Disallowance u/s 80P as against the denial of deduction u/s 80P(2)(i) - AO rejected the claim for the reason that the books of accounts have been rejected by him - CIT(A) has reversed this decision - HELD THAT:- Under these circumstances we uphold the finding of the first a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooperative Thrift and Credit Society engaged in the business of accepting deposits from its members and providing credit to them. The main source of income of the assessee is earning of interest on loans given to members and on fixed deposits. The assessee has claimed 100% deduction u/s 80P(2)(i) on the business income shown at ₹ 12,44,152/- during the year and thus, decided NIL income. 3. The AO in his order u/s 143(3) on 7.12.2007 concluded as follows :- 14. In this case, cash deposits of ₹ 3,00,63,224/- has been found in the aforesaid four bank accounts of the assessee during the year and in spite of giving several opportunities, the assessee has been failed to explain the source of the deposits. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Societies Act, 1972. The main object of the society is to promote the economic interest of the members and particularly to create funds to give loans in their necessity. The members of the appellate society have accounts with the society and they deposited cash in such accounts . The receipt from the members are under the various accounts i.e. fixed deposits, compulsory deposits, share money, optional deposits, admission fee, repayment of principal loan, loan interest, etc. The AO has made an addition on the ground that the assessee has failed to furnish a) source of cash deposits of ₹ 3,00,63,324/- in his bank accounts b) the complete list of depositors with their name and address, occupation, quantum of depositing money and date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts members against the repayment of loans, interest on loan, fixed deposit, admission fee, share capital etc. is explained adequately unless some other incriminating fact was brought on record. Keeping all these facts and circumstances in view, and also the documents produced, submissions and arguments made, I am of the considered opinion that source of cash deposit and the various alleged discrepancies mentioned by the AO have been adequately explained and the addition made u/s 68 of the Income Tax Act, 1961 amounting to ₹ 3,00,63,224/- deserves to be deleted. Held accordingly. 9. When the member of co-operative society deposits money in his account maintained with the co-operative society, the money does not become unexp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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