TaxTMI 
TaxTMI 
2020 (5) TMI 337
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....y are clubbed and heard together and consolidated order is passed. For the sake of convenience, we shall take up the appeal ITA No.1203/Bang/2019 and the facts narrated therein. The assessee has raised the following grounds of appeal: 1. The Pr. CIT erred in invoking the provisions of section 263 of the Act ignoring the fact that the eligibility for exemption u/s 80P of the act was examined by the A.O. during the course of assessment. 2. The Pr. CIT was not correct in not appreciating the facts that the A.O. has verified the exemption claimed u/s. 80P and allowed the exemption based on Hon'ble Jurisdictional High Court decision. 3. The Pr. CIT was wrong in not appreciating the facts that the Society has fulfil....
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....examine the allowability of deduction under Section 80P of the Act. The assessee has filed reply with details supporting the claim of deduction u/sec80P of the Act and objections on 11.2.2019 referred at page 3 to 11 of the revision order, and filed written submissions. The contentions of the assessee, that an enquiry conducted by the Assessing Officer and accepted claim under Section 80P of the Act and relied on judicial decisions. Whereas Pr CIT has set aside the order of Assessing Officer and directed the Assessing Officer to make fresh examination of claim of deduction u/sec80P of the Act and to make enquiry into the nature of income earned by the assessee attributable to the providing credit facilities to members of the society and ....
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....spect of income and claims. We on perusal of the assessment order, find that the Assessing Officer has issued Notice under Section 142(1) of the Act along with questionnaire, But there are no findings or observations of the Assessing Officer that he has conducted enquiries in respect of income and claims made by the assessee. In the course of hearing, the Bench wanted the LdAR to furnish details filed in response to notice under Section 142(1) of the Act and questionnaire, the learned Authorized Representative could not substantiate with material evidences filed in the Assessment proceedings. The fact remains that the order passed by the Assessing Officer prima facie, is without conduct of Enquiry. We found the co-ordinate bench of this Tri....
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....the Act was validly invoked by the CIT." Prima facie, on applying the ratio of decision to the present case, we find that the Assessing Officer could not conduct enquiry into income and claims made by the assessee nor the assessee could demonstrate with evidences that the Assessing Officer has conducted the enquiry. We find as per provisions of Section 263 of the Act Expln.2 w.e.f 1.6.2015 is as under- "Section 263 (1) Explanation 1 .......... Explanation 2.-For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Commissioner or Commiss....