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TMI Blog2023 (1) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... r in which the assessing officer completed the assessment by conducting inquiry after issuing a questionnaire on the deduction claimed by the assessee under Section 80P(2)(a)(i) and also taking note of the detailed report filed by the assessee. Tribunal noted that the documents placed by the assessee before it clearly demonstrates the nature of activity carried on by the assessee resulting in different business income which is covered by the Tribunal of 80P(2)(a)(i). In this regard reliance was placed on High Court of Bombay in the case of GABRIEL INDIA LTD [ 1993 (4) TMI 55 - BOMBAY HIGH COURT ] Further as to the justification on the part of the PCIT to invoke its power under Section 263 Tribunal took guidance from the decision of the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eria, Adv. ..for the appellant ORDER The Court : - Heard learned Counsel on behalf of the appellant. This appeal by the revenue filed under Section 260A of the Income Tax Act, 1961, (the Act) is directed against the order dated 28.6.2022 passed by the Income Tax Appellate Tribunal B Bench, Kolkata (the Tribunal) in ITA No.110/Kol/2021 for the assessment year 2016-2017. The revenue has raised following substantial questions of law for consideration :- i) Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal has erred in law in quashing the order passed under Section 263 of the Income Tax Act, 1961 without considering the fact that the Hon ble Supreme Court in the case of M/s. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 142(1) of the Act calling upon the respondent/assessee to furnish justification on claim of deduction under Section 80P of the Act. In response to such notice the assessee submitted a details reply which has been extracted by the learned Tribunal in the impugned order. After considering the reply the assessing officer observed that out of the total income of Rs.32,31,576/- the business income is Rs.26,96,495/- and the balance if Rs.5,35,081/- is on account of short term capital gain and thus restricted the deduction under Section 80P of the act to the amount of Rs.26,96,495/- which relates to the business income. The PCIT exercised its jurisdiction under Section 263 of the Act primarily by placing reliance on the decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... high Court of Karnataka in the case of GUTTI GEDERARA COOPERATIVE SOCIETY LTD.VS. ITO 377 ITR 464 (Karnataka) and held that when the amount which is deposited in the bank was not an amount due to members and it was not the liability of the society to the members then the interest earned from the deposits in the bank was held to be eligible for deduction under Section 80P (2)(a)(i) of the Act. That apart, the learned Tribunal has also extensively gone into the manner in which the assessing officer completed the assessment by conducting inquiry after issuing a questionnaire on the deduction claimed by the assessee under Section 80P(2)(a)(i) and also taking note of the detailed report filed by the assessee. Furthermore, on facts the Tribunal n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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