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TMI Blog2023 (8) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... 516 - GUJARAT HIGH COURT] and M/S. SURENDRANAGAR DISTRICT CO-OP. MILK PRODUCERS UNION LTD.[ 2019 (9) TMI 978 - ITAT RAJKOT] as held that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of deduction u/s 80P(2)(d). We also need to be mindful of the fact that in 263 proceedings, the scope of proceedings is not as vast as in the case of original assessment proceedings and would the assessment order can be set-aside only within the framework provided u/s 263 of the Act. Hon ble Supreme Court in the case of Shreeji Prints (P.) Ltd. [ 2021 (9) TMI 108 - SUPREME COURT] outlining the scope and powers of applicability of Section 263 we are of the considered vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide the assessment order framed u/s. 143(3) read with sections 143(3A) 143(3B) of the Income-tax Act, 1961 by holding that the AO did not conduct any inquiries or verification in respect of eligibility of deduction claimed by your appellant of interest income u/s 80P(2)(a)(i) / 80P(2)(d) of the Act. 5. Your Honour s appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal. 3. The brief facts of the case are that the assessee filed return of income for A.Y. 2018-19 declaring total income of Rs. NIL. The assessment was finalized under Section 143(3) of the Act determining total assessed income at Rs. NIL. Subsequently, the Principal Commissioner of Income Tax (in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttention to Page 7 to 9 of the Paper Book (Query No. 7), wherein the Assessing Officer had inquired into the eligibility of assessee s claim for deduction under Section 80P of the Act. Secondly, the Counsel for the assessee drew our attention to Pages 10 to 25 of the Paper Book, in which the assessee had filed detailed reply in response to the query raised by the Assessing Officer. Accordingly, the Counsel for the assessee submitted that the Assessing Officer had examined this issue in detail and therefore, it is not a case where there is a lack of enquiry on part of the Assessing Officer during the course of assessment proceedings. Secondly, the Counsel for the assessee submitted that in various judicial precedents, the Courts and Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee had filed a Written Submission in support of its eligibility for claim of deduction under Section 80P(2) of the Act. Accordingly, evidently this issue has been examined by the Assessing Officer during the course of assessment proceedings, and after taking the submissions of the assessee on record, the Assessing Officer allowed the claim of the assessee. 7. The second issue for consideration is whether the view taken by the Assessing Officer is a legally plausible view. In the case of Surendranagar District Co-op. Milk Producers Union Ltd. 111 taxmann.com 69 (Rajkot - Trib.) , the Rajkot ITAT held that Assessee-co-operative society could not claim benefit of Section 80P(2)(d) in respect of interest earned by it from deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. If the appellant wants to avail of the benefit of deduction of such interest income, it is always open for it to deposit the surplus funds with a co-operative bank and avail of deduction under section 80P(2)(d) of the Act. In the case of Bardoli Vibhag Gram Vikas Co.Op. Credit Society Ltd. 127 taxmann.com 334 (Surat-Trib.) , the ITAT held that where Assessing Officer had made enquiries on allowability of deduction under Section 80P(2)(d) and passed assessment order in respect of gross interest received from co-operative bank and thus, had taken a reasonable and possible view which cannot be held as erroneous, Commissioner was not justified in revising said order. In the case of Kaliandas Udyog Bhavan Premises Co-op Society L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt and the jurisdictional Rajkot ITAT. We also need to be mindful of the fact that in 263 proceedings, the scope of proceedings is not as vast as in the case of original assessment proceedings and would the assessment order can be set-aside only within the framework provided under Section 263 of the Act. In the case of Shreeji Prints (P.) Ltd. 130 taxmann.com 294 (SC) , the Hon'ble Supreme Court made the following observations on the scope of 263 proceedings: We thus find merit in the plea of the assessee that the Revisional Commissioner is expected show that the view taken by the AO is wholly unsustainable in law before embarking upon exercise of revisionary powers. The revisional powers cannot be exercised for directing a f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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