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TMI Blog2022 (7) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... some of them are against the assessee. It is also an admitted fact that the Hon ble High Court of Gujarat is in favour of the assessee with respect to the interest on deposits made with the co-operative bank. As per SABARKANTHA DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD [ 2014 (6) TMI 977 - GUJARAT HIGH COURT] it is transpired that the AO has taken one of the possible view for allowing the deduction to the assessee under the provisions of section 80P(2)(d)/80P(2)(a)(i)(a) of the Act. Where two view are possible on the issue and the AO has taken one of the possible view, but the PCIT do not agree with the view adopted by the AO, in such scenario, the order of the AO cannot be held erroneous. We find no error in the order of AO so as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med by the Appellant of interest income u/s.80P(2)(a)(i)/80P(2)(d) of the Act. 3. The learned Principal Commissioner of Income-tax - 1, Rajkot-1, Rajkot failed to appreciate that the impugned issue was duly examined by the assessing officer by wayh of specific inquiry/notice and reply thereto, while finalizing assessment proceedings u/s.143(3) of the Act and case of the Appellant was reopened specifically for verification of deduction u/s.80P of the Act I respect of interest income earned from co-operative bank. 4. The appellant craves leave to add, amend, alter and withdraw any ground of appeal anytime up to the hearing of this appeal. 3. The assessee by way of an application dated 6 May 2022, received by the registry of ITAT Rajk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to its members. The assessee in the year under consideration declared interest income of Rs. 35,08,387/- from fixed deposit made with Co-operative Bank namely Rajkot Nagrik Sahakari Bank Ltd and Junagarh Jilla Sahakari Bank Ltd which was claimed as exempted under the provision of section 80P(2)(a)(i)/80P(2)(d) of the Act. The AO in the assessment framed under section 143(3) of the Act accepted the claim of the assessee. 7. However, the learned PCIT was of the view that assesse being credit society was eligible for deduction under section 80P(2)(i)(a) of the Act for interest income earned from credit facilities provided to its members only. However, the interest income from fixed deposit made with Co-operative bank is not allowable deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the learned PCIT, the assessee is in appeal before us. 9. The learned AR before us inter-alia contended that the Hon ble Karnataka High Court in the case of PCIT vs. Totaghar s Co-operative Sales Society Ltd. reported in 78 taxmann.com 169 after distinguishing the facts of the case observed by the Hon ble Supreme Court cited above has held that interest income from cooperative bank is eligible for deduction under section 80P(2)(d) of the Act. The learned AR also contended that the Hon ble High Court of Gujarat in the case of Surat Vankar Sahkari Sangh Ltd. vs. ACIT reported in 72 taxmann.com 169 has also held that interest from the co-operative bank is eligible for deduction under section 80P(2)(d) of the Act. According to the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO has taken one of the possible view for allowing the deduction to the assessee under the provisions of section 80P(2)(d)/80P(2)(a)(i)(a) of the Act. Where two view are possible on the issue and the AO has taken one of the possible view, but the PCIT do not agree with the view adopted by the AO, in such scenario, the order of the AO cannot be held erroneous. In this regard we find support and guidance from the judgment of the Hon ble Gujarat High Court in the case of CIT vs. Mehsana District Co. Op. Milk Producers Union Ltd. where it was held as under: It is well-settled that the provisions of section 263(1) cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer, and it is only when the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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