The assessee, a co-operative credit society, had not originally filed its return of income for the relevant assessment year. Based on information available regarding substantial cash and deposit transactions, the Assessing Officer reopened the assessment under Section 147 after following the procedure prescribed under Section 148A. In response, the assessee filed its return declaring income of ₹15,24,220.

During reassessment proceedings, the Assessing Officer made additions on account of bad debts, disallowance of provisions and restriction of deduction under Section 80P(2)(c), resulting in assessment of higher income. The Commissioner (Appeals) confirmed the additions, primarily on the ground that the assessee failed to produce documentary evidence, including proof of disclosure under the Income Disclosure Scheme, 2016.

Before the Tribunal, the assessee furnished Form No. 3, Form No. 4 and challans evidencing payment of tax, surcharge and penalty under the Income Disclosure Scheme, 2016, and contended that the income disclosed under the Scheme could not be taxed again under the regular provisions of the Income-tax Act.

The ITAT observed that these documents were not available before the lower authorities and that verification and reconciliation of the income disclosed under the Income Disclosure Scheme with the income assessed for the year under consideration was required. Accordingly, the Tribunal restored the matter to the file of the Assessing Officer for factual verification and fresh adjudication in accordance with law, after granting due opportunity of hearing to the assessee.

Source Link - https://itat.gov.in/public/files/upload/1767952464-Udpftt-1-TO.pdf

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