Question 1

What are the key legal issues in Natungram Samabay Krishi Unnayan Samity Limited Vs. ITO, Ward-42(1), Murshidabad?

Accepted Answer

1. Whether the Commissioner of Income Tax (Appeals) erred in not appreciating the submissions of the assessee. 2. Whether the assessee is involved in the business of banking and hence not entitled to certain deductions.

Question 2

What are the facts of Natungram Samabay Krishi Unnayan Samity Limited Vs. ITO, Ward-42(1), Murshidabad?

Accepted Answer

The assessee, Natungram Samabay Krishi Unnayan Samity Limited, a Primary Agricultural Credit Society, filed a return of income showing ‘NIL’ income after claiming a deduction under section 80P of the Income Tax Act, 1961, amounting to ₹36,40,934/-. The case was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS). During the assessment proceedings, the Assessing Officer issued a notice under section 142(1) of the Act, to which the assessee did not respond. Consequently, the assessment was completed as a best judgment, disallowing the deduction under section 80P and adding liabilities of ₹3,23,82,878/- to the total income due to lack of supporting documents. The total income was assessed at ₹3,60,23,813/- under section 144 of the Act. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals) who set aside the assessment order and referred the matter back to the Assessing Officer for a fresh assessment.

Natungram Samabay Krishi Unnayan Samity Limited Vs. ITO, Ward-42(1), Murshidabad

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