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TMI Blog2024 (8) TMI 1181X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to that extent regarding interest earned from Nationalised Banks. The observation of the PCIT that no proper enquiry was made and there are binding judicial precedent, will not be justifiable for invoking Section 263 Explanation-2 as there are several other decisions of the various Hon ble Courts which decides this issue in favour of the assessee. Thus, the invocation of Section 263 of the Act by the PCIT is not justifiable and, therefore, order passed by the CPC, Income Tax Department, does not sustain. Appeal of the assessee is allowed. - Ms. Suchitra Kamble, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member For the Assessee : Shri S.N. Divatia Shri Samir Vora, ARs. For the Revenue : Shri H. Phani Raju, CIT-DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to the interest of the Revenue for want of proper inquiry and on merits held the same to be inadmissible. 2.3 The Id. Pr. CIT has failed to appreciate that the provision of sec.80P(4) was not applicable to a Co.Op. Society engaged in providing credit facility to its members and the same does not ceased to be a Co.Op. Society for the purposes of sec.80P(2)(d). 3. The assessee filed return of income on 03.08.2018 declaring income of Rs. Nil. The Assessment Order was passed under Section 143(3) read with Section 143(3A) 143(3B) of the Income Tax Act, 1961 on 22.01.2021, after making addition of Rs. 11,58,473/- on account of interest received from Nationalised Banks. The PCIT observed that the assessee is a Co-operative Credit Society registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Assessment Order dated 22.01.2021 with the direction to the Assessing Officer to pass fresh Assessment Order denovo . 4. Being aggrieved by the Assessment Order, the assessee filed present appeal before us. 5. The Ld. AR submitted that the issue related to deduction under Section 80P(2)(d) of the Act was examined by the Assessing Officer during the assessment proceedings and thereafter, in fact, has disallowed the interest income from Nationalised Banaks. The Ld. AR further submitted that the interest income from Kaira District Central Co-operative Bank was also received and was thoroughly verified by the Assessing Officer at the assessment stage and in fact there are several decisions which are in favour of the assessee and when ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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