9911796707
|
Home
Issues involved:
The judgment involves a challenge to an order passed under Section 263 of the Income Tax Act, 1961 for the assessment year 2005-2006, regarding the deduction under Section 80P(2)(a)(vi) and the treatment of interest income. Deduction under Section 80P(2)(a)(vi): The Commissioner found the assessment order to be erroneous and prejudicial to the interest of the Revenue as the Assessing Officer (AO) allowed deduction under Section 80P(2)(a)(vi) without verifying relevant details. The Commissioner noted that the AO should not have allowed the deduction for a cooperative society in the status of AOP. The assessee argued that the AO correctly allowed the claim based on previous Tribunal decisions and that the income was exempt. The Tribunal held that the AO's decision was not erroneous, as it was based on permissible views and previous Tribunal decisions, thus allowing the appeal. Treatment of interest income: Regarding the treatment of interest income as income from other sources, the assessee appealed before the CIT(A) and the Tribunal, both of which ruled in favor of the assessee. The Tribunal concluded that the AO's decision to allow relief to the assessee under Section 80P(2)(a)(vi) was correct, and the Commissioner should not have substituted the AO's view without showing its unsustainability in law. The Tribunal set aside the impugned order under Section 263, restoring the assessment order dated 19-12-2007. Conclusion: The Tribunal allowed the assessee's appeal, emphasizing that the AO's decision was not erroneous and prejudicial to the Revenue's interest. The Tribunal found that the AO's actions were based on permissible views and previous Tribunal decisions, ultimately setting aside the Commissioner's order under Section 263 and restoring the assessment order. Order pronounced in Open Court on 21st January, 2011
|
