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TMI Blog2022 (1) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... rejudicial to the interest of the Revenue, if the AO has taken a view which is not legally tenable. Per contra , if two views are available on a particular issue and the AO adopts one of such views, the case goes outside the purview of revisional power exercisable by the Pr.CIT u/s.263 of the Act. We, therefore, hold that the ld. Pr. CIT was not justified in exercising the revisional power anent to the interest income in the circumstances as are obtaining in this case. We, therefore, set-aside the same. - Appeal of assessee allowed. - ITA No.134/PUN/2021 - - - Dated:- 13-1-2022 - Shri R.S. Syal, Vice President And Shri S.S. Viswanethra Ravi, Judicial Member For the Assessee : Shri Shriram Puranik For the Revenue : Shri Moh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts with other Co-operative Societies on which interest income was earned. Deduction u/s.80P was claimed on such interest income, which was allowed by the AO, but questioned by the ld. CIT in the extant proceedings. 4. It is relevant to note that we are dealing with a case in which the ld. Pr. CIT has invoked his power u/s.263 of the Act. It is trite that the exercise of such a power is ousted in case of a debatable issue. An assessment order can be termed as erroneous and prejudicial to the interest of the Revenue, if the AO has taken a view which is not legally tenable. Per contra , if two views are available on a particular issue and the AO adopts one of such views, the case goes outside the purview of revisional power exercisabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is not relevant. The issue in that case was the eligibility of deduction u/s.80P(2)(d) of the Act on interest earned by the assessee co-operative society on investments made in co-operative banks. In that case, the assessee was engaged in the activity of marketing agricultural produce by its members; accepting deposits from its members and providing credit facility to its members; running stores, rice mills, live stocks, van section, medical shops, lodging, plying and hiring of goods and carriage etc. It was in that background of the facts that the Hon ble High Court held that the assessee could not claim deduction u/s.80P(2)(d) of the Act. When we consider the effect of this decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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