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TMI Blog2024 (6) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... see was dealing with non-members and had violated the principles of mutuality. AO has also referred to the judgment of case of SAURASHTRA KUTCH STOCK EXCHANGE LTD [ 2008 (9) TMI 11 - SUPREME COURT] for the limited proposition that a rectification order can be passed on the basis of subsequent judgment. It is interesting to note that the AO has not referred to the subsequent judgment in the case of Mavilayi Service Co-operative Bank Ltd. [ 2021 (1) TMI 488 - SUPREME COURT] which was already available when he had issued show cause notice to the assessee. The Hon ble Apex Court in Mavilayi Service Cooperative Bank Ltd. (supra) has clearly held that to the extent of dealing with non-members, proportionate deduction for the same can be denied. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operative society engaged in the business of providing credit facilities to its members. For the AY 2014-15, return of income was filed on 6.3.2015 declaring a net income of Rs.3,700, after claiming deduction u/s. 80P of the Act amounting to Rs.27,16,210. The case was selected for scrutiny and notices u/s. 143(2) 142(1) were issued. After hearing the assessee, the AO passed an order u/s. 143(3) dated 14.12.2016 accepting the returned income. Subsequently the assessee was issued notice by the AO dated 22.7.2021 informing his intention to rectify the assessment order dated 14.12.2016. Since there was no reply to the notice issued, the AO passed an order u/s. 154 of the Act on 30.3.2022 denying the claim of deduction u/s. 80P. 4. Aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exchange Ltd. The appellant on the other hand has not gone into the merits of the case at all. Relying on the decisions of the Hon ble SC, I refuse to interfere with the order of the AO. 5. Aggrieved by the order of the CIT (Appeals), the assessee has filed the present appeal before the Tribunal. The assessee has filed a paperbook comprising of 19 pages enclosing therein notice u/s. 154, assessment order u/s. 143(3), the case law relied on, written submissions filed before the CIT (A), etc. The ld. AR reiterated the submissions made before the CIT (A) and submitted that the there is no mistake apparent on record warranting interference u/s. 154 of the Act. It is submitted that the issue involved is highly debatable and not amenable to rect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same, 154 order was passed on 30.3.2022 denying benefit of deduction u/s. 80P of the Act. The rectification order dated 30.3.2022 reads as follows:- On perusal of the assessment record for the AY 2014-15, it is seen that deduction u/s 80P was wrongly granted in the order u/s 143(3) dated 14/12/2016. As the mistake is apparent from record, The same is rectified. From the above rectification order, it is seen that the AO has merely stated that the assessee has been wrongly granted deduction u/s. 80P of the Act and therefore the same has been rectified. The AO has not passed a speaking order stating that deduction u/s. 80P allowed is a mistake apparent from the record. The mistake apparent from the record is which prima facie it is visible to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the assessee had violated the principles of mutuality by dealing with nonmembers. Therefore, the issue is highly debatable and by no stretch of imagination can be termed as a mistake apparent on the record. Only an obvious and patent mistake which can be established not by a long drawn process of reasoning alone can be subjected to rectification proceedings u/s. 154 of the Act. In this case, there is nothing on record to suggest that the assessee had violated the principles of mutuality and has been dealing with non-members. Therefore, we are of the view that the issue raised in this appeal is not a mistake apparent on record which is amenable to rectification u/s. 154 of the Act. In this context, we rely on the judgment of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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