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TMI Blog2023 (6) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... (3A) & 143(3B) by the National e-Assessment Centre, Delhi, [for short "AO"]. 2. The appellant raised following grounds through the appeal memo: 1. Ground No. 1 - Order u/s 263 is passed without jurisdiction On the facts and in the circumstances of the case and in law, the Ld. PCIT has erred in exercising/assuming revisional jurisdiction u/s 263 of the Act, as the Assessing Officer while framing the assessment had taken a possible view and allowed the assessee's claim for deduction after verification. The Appellant prays that the order u/s 263 is without jurisdiction and deserves to be quashed/set-aside 2. Ground No. 2 - Erred in concluding that assessee is ineligible to claim 80P deduction On the facts and in the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of Rs. 3,11,740/-. Subsequently, the assessee revised the return of income declaring Rs. Nil income after claiming deduction of Rs. 6,32,86,382/- under the provisions of section 80P of the Income Tax Act, 1961 ('the Act'). Against the said return of income, the assessment was completed by the Assessing Officer accepting the returned income vide order dated 19.11.2019 passed u/s 143(3) of the Act. 4. Subsequently, on examination of the assessment order, the Ld. PCIT formed an opinion that failure the Assessing Officer to examine the taxability of interest earned on the investments made with the cooperative banks, as the same constitutes business income, rendered the assessment order erroneous. Accordingly, the Ld. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer to examine the issue rendered the assessment erroneous and prejudicial to the interests of the revenue. Accordingly, Ld. PCIT set aside the assessment order with a direction to examine the assessee's claim of deduction u/s 80P(2)(a)(i) as well as interest of Rs. 19,88,77,712/- u/s 80P(2)(d) after affording reasonable opportunity of being heard to the appellant. 6. Being aggrieved, the appellant is in appeal before us in the present appeal. 7. The Ld. AR submits that the issue of eligibility of income earned on the investment made with the cooperative bank was examined by the Coordinate Bench of this Tribunal in the case of M/s. Jan Kalyan Nagri Sahakari Pat. Limited Sanstha in ITA No. 825/PUN/2019 for A.Y. 2014-15 ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interests of revenue. In order to invoke the power of revision, the above two conditions are required to be satisfied cumulatively. References in this regard can be made to the decision of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs. CIT, 243 ITR 83 (SC) and in the case of CIT vs. Max India Ltd., 295 ITR 282 (SC). The error in the assessment order should be one that it is not debatable or plausible view. In a case where the Assessing Officer examined the claim, took one of the plausible views, the assessment order cannot be termed as an ‚erroneous‛. In the present case, we find that admittedly the interest income was earned from the cooperative banks, the cooperative bank is also a specie of cooperat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of State Bank of India Vs. CIT 389 ITR 578 (Guj.), the Hon'ble Delhi High Court in the case of Mantola Cooperative Thrift & Credit Society Ltd. Vs. CIT 50 taxmann.com 278, the Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Punjab State Cooperative Agricultural Development Bank Ltd. 389 ITR 68 and the Hon'ble Kolkata High Court in the case of CIT Vs. Southern Eastern Employees Cooperative Credit Society Ltd. 390 ITR 524 took a view that the income arising on the surplus invested in short term deposits and securities cannot be attributed to the activities of the society and, therefore, not eligible for exemption u/s. 80P(2)(a)(i) of the Act. However, the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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