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TMI Blog2015 (1) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act is correct. There is no error. When there is no error, the question of order being prejudicial would not arise. The Tribunal has rightly entertained the appeal and set- aside the order u/s 263. Therefore, the said order is in accordance with law and cannot be found fault with. The substantial question of law is answered in favour of the assessee - Decided against the revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... effect from 01.04.2007 and therefore, he set-aside the order of assessment and remanded the matter back to the Assessing Authority to consider the applicability of the aforesaid provision. 4. Aggrieved by the said order, the assessee preferred an appeal before the Tribunal. 5. The Tribunal held that as the assessee is not a Co-operative Bank, Section 80P(4) has no application. Moreover, the power under Section 263 of the Act could be invoked by the Revisional Authority only, if the order is erroneous and thereby is prejudicial to the interest of revenue. In the instant case, as the assessee is not a Co-operative Bank i.e. there is no error committed by the Assessing authority much less, the said order was prejudicial to the interest of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t given to the Co-operative society. Section 80P(4) was introduced by Finance Act, 2006 with effect from 01.04.2007 excluding the said benefit to a Co-operative Bank. The said provision reads as under:- "(4) The provisions of this section shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank. (a) "co-operative bank" and "primary agricultural credit society" shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949); (b) "primary co-operative agricultural and rural development bank" means a society having its area of operation confined to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Authority. The said order was not prejudicial to the interest of the Revenue. The condition precedent for the commissioner to invoke the power under Section 263 is that the twin condition should be satisfied. The order should be erroneous and it should be prejudicial to the interest of the revenue. 9. This Court had an occasion to consider Section 263 of the Act in the case of - COMMISSIONER OF INCOME-TAX AND ANOTHER V. DIGITAL GLOBAL SOFT LTD. [2013] 354 ITR 489 (Karn) where paragraph-18, it has held as under: "As is clear from the wording in section 263, the Commissioner gets the jurisdiction to revise any proceedings under this Act if he considers that any order passed therein by the Assessing Officer is erroneou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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