" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1605/PUN/2024 Assessment Year : 2018-19 Shree Mahalaxmi Gramin Bigarsheti Sahakari Patsanstha, X 320, Minatai Thakre Market, Bajajnagar, MIDC, Waluj, Aurangabad – 431136, Maharashtra PAN : AADAS0565N Vs. Income Tax Officer, Ward-1(5), Aurangabad Appellant Respondent आदेश / ORDER This appeal filed by the assessee pertaining to the assessment year 2018-19 is directed against the order dated 12.06.2024 of National Faceless Appeal Centre, Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Assessment Order dated 25.01.2024 passed u/s.147 r.w.s.144B of the Act. 2. This is a recalled matter in as much as the earlier exparte order dated 26.09.2024 passed by this Tribunal has been recalled vide M.A.No.76/PUN/2024 order dated 01.04.2025. 3. At the outset, Ld. Counsel for the assessee referring to the judgment of Hon’ble Jurisdictional High Court in the case of CIT Vs. Jet Airways (I) Ltd. reported in (2011) 331 ITR 236 (Bombay) submitted that the assessment order framed in the instant case for A.Y. 2018-19 has to be quashed as ld. Assessing Officer has not Assessee by : Shri N. Ramesh N. Thete (Through virtual) Revenue by : Shri Dayanand Jawalikar Date of hearing : 17.06.2025 Date of pronouncement : 20.06.2025 ITA No.1605/PUN/2024 Shree Mahalaxmi Gramin Bigarsheti Sahakari Patsanstha 2 made addition for the reasons recorded for re-opening of the assessment and has made the addition/disallowance on some other issue. He further stated that the assesssee’s case was reopened for the alleged cash deposit of Rs.2,44,25,000/- but during the course of assessment proceedings assessee successfully explain the sources of cash deposit but then ld. AO made addition by disallowing deduction u/s.80P of the Act applying the provisions of section 80AC of the Act. 4. On the other hand, ld. Departmental Representative submitted that the alleged adjustment made by AO applying section 80AC of the case comes under the category of prima-facie adjustment. 5. I have heard the rival contentions and the perused placed before me. I observe that the assessee is a Cooperative Society and did not furnish any return of income for A.Y. 2018-19. However, ld. Assessing Officer based on the information that cash of Rs.2,44,25,000/- has been deposited in the current account of the assessee society during F.Y. 2017-18, issued notice u/s.148(b) of the Act and thereafter final notice u/s.148 was issued on 07.04.2022 after taking prior approval from the competent authority. However, during the course of re-assessment proceedings, ld. AO observed that actual amount of cash deposit was Rs.81,41,630/- instead of cash deposit of Rs.2,44,25,000/- mentioned in the data received by ld. AO under the specific information from the Risk Management System. Further, ld. AO was satisfied about the details explaining the source of cash deposit of Rs.81,41,630/- and did not make any addition for the unexplained cash deposit. Thereafter, ld. AO found that the assessee has claimed deduction u/s.80P(2)(a)(i) of the Act at ITA No.1605/PUN/2024 Shree Mahalaxmi Gramin Bigarsheti Sahakari Patsanstha 3 Rs.14,99,742/- but denied the said claim for the reason that assessee has not furnished the return of income. Now at this stage, ld. AO was required to issue a fresh show cause notice u/s.148 of the Act for making the said adjustment. However, ld. AO without issuing fresh show cause notice has made the impugned disallowance denying the deduction u/s.80P(2)(a)(i) of the Act. Under these given facts, judgment of Hon’ble Jurisdictional High court in the case of Jet Airways (I) Ltd. (supra) comes to the rescue of the assessee wherein it was held that “if after issuing a notice under section 148, he (AO) accepted the contention of the assessee and holds that the income which he has initially formed a reason to believe had escaped assessment, has as a matter of fact not escaped assessment, it is not open to him independently to assess some other income. If he intends to do so, a fresh notice under section 148 would be necessary, the legality of which would be tested in the event of a challenge by the assessee”. Considering the judgment of Hon’ble Jurisdictional High Court, I find that in the instant case ld. AO has issued only one show cause notice u/s.148 along with the reasons to believe of the escapement of income with regard to unexplained cash deposit. During the course of assessment proceedings, ld. AO was satisfied with the source of cash deposit and therefore if he intended to make addition on some other ground he was required to issue a fresh show cause notice u/s.148. The ratio laid down by Hon’ble Jurisdictional High Court is squarely applicable on the facts of the instant case and therefore since ld. AO has not made addition on the reasons recorded in the notice u/s.148 of the Act and has made addition/disallowance under some other head without issuing fresh show cause notice u/s.148 of the Act, assessment order dated 25.01.2024 is held to be bad in law and deserves to be ITA No.1605/PUN/2024 Shree Mahalaxmi Gramin Bigarsheti Sahakari Patsanstha 4 quashed. Since necessary exercise as contemplated under the Act has not been carried out and Ld. Departmental Representative having failed to controvert this contention by placing any binding precedent in favour of the Revenue, I therefore quash the assessment order. Finding of ld.CIT(A) is set aside and grounds of appeal raising legal issues are allowed. 6. So far as merits of the case are concerned since I have quashed the assessment order, dealing with the grounds on merits of the case will be merely academic in nature and therefore held to be infructuous. 7. In the result appeal of the assessee is allowed. Order pronounced on this 20th day of June, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 20th June, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune "