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TMI Blog2023 (12) TMI 1418X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment Year (AY) 2018-19. The assessee has raised following grounds of appeal: "1. On the facts and circumstances of the case as well as law on the subject, the learned Pr. Commissioner of Income Tax has erred in passing revisionary order u/s 263 of the I.T. Act, 1961 by setting aside the order of ld. Assessing Officer passed u/s 143(3) of the I.T. Act, 1961 dated 01/02/2021 for the year under consideration although said order is neither erroneous nor prejudicial to the interest of revenue. 2. On the facts and circumstances of the case as well as law on the subject, the learned Pr. Commissioner of Income Tax has erred in observing that interest income of Rs. 8,40,577/- from co-operative bank is not allowable either u/s 80P(2)(a)(i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. AR of the assessee submits that the assessee is not going to be benefitted by filing appeal belatedly. The delay was occurred due to misunderstanding of his consultant on law point to appreciate that the order under Section 263 of the Act is itself an appealable order. The ld. AR of the assessee submits that the assessee has good case on merit and is likely to succeed if the matter is heard on merit. The issue on merit is otherwise covered in favour of assessee. 3. On merit, the ld. AR of the assessee submits that the assessee is a cooperative society. In the computation of income, the assessee has claimed deduction of interest income earned from Cooperative bank, such deduction is claimed under Section 80P(2)(d) of the Act. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n such facts before the Assessing Officer in the proceedings initiated in pursuance of direction under Section 263 of the Act. The ld. CIT-DR for the revenue submits that he supports the order of ld. Pr.CIT as the assessing officer allowed impugned deduction without discussing the issue in the assessment order. There is no reference in the assessment order, if such issue was examined or verified by the assessment order while accepting the claim of the assessee, thus, both the conditions of section 263 that is the order is erroneous and so far as prejudicial to the interest of revenue. 5. We have considered the submissions of both the parties and perused the record carefully. First we will consider the plea of assessee for condonation of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no other issue was identified nor examined or issued any show cause notice on any other issue. The assessee filed its reply on 30/12/2022 wherein the assessee claimed that interest earned on FDR with Surat District Cooperative Bank is deductible under Section 80P. The ld. Pr.CIT while referring the decision of Hon'ble Karnataka High Court in the case of Pr.CIT Vs Totagars Co-operative Sale Society (2017) 83 taxmann.com 140 (Kar) held that interest earned by assessee from surplus deposit with cooperative bank is not eligible for deduction under Section 80P(2)(d) of the Act and such interest is required to be added to the income of assessee. The ld. Pr.CIT on such observation, set aside the assessment order dated 01/02/2021 with directio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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