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TMI Blog2022 (7) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... e case back to the AO to carry out de novo verification on the issues considered by the PCIT in the impugned order in the light of the principles laid down in the case of Mavilayi Services Cooperative Bank Ltd., [ 2021 (1) TMI 488 - SUPREME COURT] and provide reasonable opportunity of being heard to the assessee. The assessee is directed to file the required documents before the AO and extend full cooperation to the AO. Appeal by the assessee is allowed for statistical purpose. - ITA No.492/Bang/2021 - - - Dated:- 19-7-2022 - Shri N.V Vasudevan, Vice President And Ms. Padmavathy S, Accountant Member For the Assessee : None For the Revenue : Mrs. Susan D George, CIT(OSD) ORDER PER PADMAVATHY S, ACCOUNTANT MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premise on which impugned Order u/s 263 passed is an impermissible act and therefore final impugned Order u/s 263 deserved to be annulled. 5. On the facts and circumstances and on law, the Hon'ble Pr.CIT has assumed the jurisdiction u/s 263 on the issues which were not part of CASS Limited scrutiny mandate resulting-in violating the CBDT guidelines/instructions and therefore assumption of improper jurisdiction u/s 263 by breaching CBDT Instructions and impugned Order thus passed thereof is bad in law and liable to be annulled. 6. On the facts and circumstances and on law, the Order passed by the learned AO as on 19.12.2017 u/s 143(3) was neither erroneous nor prejudicial to the interest on revenue and therefore the interventio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted and deduction be eligible to the appellant as originally allowed by learned AO. 10.On the facts and circumstances, the Hon'ble Pr.CIT ought not to have directed the learned AO to verify the details of deduction claimed under Leave Encashment Rs.1,32,013/- without proper appreciation of facts the said leave encashment is an ascertained Liability and not contingent in nature and therefore direction passed under assumptions and presumption on this count is liable for total deletion. 11.On the facts and circumstances, the Hon'ble Pr.CIT ought not to have directed the learned AO to verify the details of deduction claimed under Audit Fee of Rs.45,552/- as audit fee is an ascertained Liability and not contingent in nature an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber in the light of decision of Hon ble Supreme Court judgment rendered in the case of Citizen Cooperative Society Vs. ACIT in Civil Appeal No.10245/2017. The AO noticed that the total amount of interest received on account of transaction with the nominal members of Rs.4,52,588/- and held that the assessee is not entitled for deduction u/s.80P on the portion of profit earned on accounts of its transactions with nominal members. The AO concluded stating that the assessee earned a profit of Rs.43,883/- and disallowed the same has not being eligible for deduction u/s 80P. The assessee had derived income from Hall rent to the extent of Rs.3,22,375 and had claimed charges towards the Hall for an amount of Rs.3,56,920 u/s.80P which the AO disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ety Ltd., Vs. ITO in ITA No.307/2014 dated 28.10.2014, wherein Hon ble High Court held that the interest accrued from the deposits made by the assessee in a nationalized bank out of the amounts which was used by the assessee for providing credit facilities to its members and therefore interest earned there from is eligible for deduction u/s 80P(2). With regard to amount paid towards leave encashment the assessee submitted that the same is paid to one Mr.Shivanna M who retired from the services and submitted the vouchers substantiating the transfer of money to his account. The audit fees, the assessee submitted that is paid towards audit of the accounts for the financial year 2014-15 and is a specific expenditure paid subsequently. 6. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Karnataka High Court in case of Tumkur Merchants Souharda Credit Co-operative Society Ltd. vs. ITO (supra). In view of the above, we modify the directions of Ld.Pr.CIT by directing the Ld.AO to carry out de novo verification on the issues considered by the Ld.Pr.CIT in the impugned order having regard to the principle laid down by Hon ble Supreme Court in case of Mavilayi Service Cooperative Bank Ltd. Vs.CIT (supra). The assessee is directed to file all requisite details in support of the claim which would be verified by the Ld.AO in accordance with law. Needless to say that proper opportunity of being heard to be granted to assessee in accordance with law. 9. Respectfully following the decision of the coordinate bench of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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