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Issues involved:
Delay in filing appeal u/s. 263 of the Act and Jurisdiction of CIT u/s. 263 regarding deduction u/s. 80P(2)(a)(i) of the Act. Delay in filing appeal u/s. 263 of the Act: The appeal was filed by the assessee-society against the order of the Commissioner of Income-tax passed u/s. 263 of the Act after a delay of 245 days. The Chief Executive Officer of the assessee explained the reasons for the delay, stating a genuine belief that there was no need to challenge the CIT's order initially. The Tribunal, considering the circumstances, condoned the delay and proceeded with the appeal for adjudication. Jurisdiction of CIT u/s. 263 regarding deduction u/s. 80P(2)(a)(i) of the Act: The CIT invoked jurisdiction u/s. 263 based on the AO's failure to properly examine the deduction u/s. 80P(2)(a)(i) of the Act in the assessment order. The CIT contended that the AO did not assess whether the assessee fulfilled the conditions of a primary co-operative society as defined in the Banking Regulation Act, 1949. The CIT concluded that the order u/s. 143(3) of the Act was erroneous and prejudicial to revenue due to allowing the deduction u/s. 80P(2)(a)(i) incorrectly. During the appeal, the assessee argued against the CIT's jurisdiction, emphasizing that the assessee was not a cooperative bank but a cooperative society providing credit facilities to members. The assessee highlighted the distinctions between a cooperative bank and society, citing relevant legal provisions. The Tribunal, after considering submissions from both sides and analyzing relevant precedents, concluded that the CIT was not justified in invoking section 263 of the Act. The appeal of the assessee was allowed, and the order u/s. 263 of the Act passed by the CIT was canceled.
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