Validity of revision u/s 263 regarding eligibility for deduction...

Validity of revision u/s 263 regarding eligibility for deduction u/s 80P(2)(d) on interest income from deposits with a cooperative bank was examined. It was held that the Assessing Officer did not conduct necessary inquiry or apply mind to verify if the interest income claimed for deduction was earned from deposits with a cooperative bank, a prerequisite for claiming deduction u/s 80P(2)(d). The Commissioner rightly assumed jurisdiction u/s 263 as the Assessing Officer's order was erroneous and prejudicial to revenue interests due to lack of verification. The Tribunal upheld the Commissioner's order setting aside the assessment for fresh adjudication after providing opportunity to the assessee. The Tribunal rejected contentions regarding lack of inquiry by the Commissioner, non-application of mind to assessee's submissions, and jurisdictional defects arising from earlier years' assessments.

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