TaxTMI 
TaxTMI 
2022 (5) TMI 413
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....s:- "1. The Impugned Order as passed by the Hon'ble Pr.CIT u/s 263 of the Income-tax Act, 1961 is arbitrary, unjust and illegal under the facts and circumstances of the appellant case. 2. On the facts and circumstances of the case and on law, the Hon'ble Pr.CIT has assumed the jurisdiction u/s 263 under incorrect application of law as twin condition of "erroneous Order and Prejudicial to interest of revenue" as enunciated u/s 263 were not satisfied simultaneously and therefore assumption of jurisdiction u/s 263 and impugned Order passed thereunder liable to be quashed as void-ab-initio. 3. On the facts and circumstances and law, the original Order passed by the learned AO was after proper application of mind and proper appreci....
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....39;ble Pr.CIT assumed the jurisdiction u/s 263 on the issues on which the escapement of income are on probability and further based on pure guess-work which is not permissible u/s 263 and therefore improper assumption jurisdiction on surmises and conjectures is bad in law and further void-ab-initio and Impugned Order thus passed liable to be set-aside in toto. 8. On the facts and circumstances and on law, the Hon'ble Pr.CIT assumed the jurisdiction u/s 263 on an opinion which is different from that of the learned AO which is not permissible on a settled law on subject and therefore improper assumption of jurisdiction u/s263 on a debatable issue and indifferent view discern on issues which is already dealt by AO is bad in law and direc....
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....TO-Ward-1, Madikeri determining total taxable income of Rs.5,19,730/-. The AO during the course of hearing called for details of loan given and deposits taken from the nominal member and interest received on account of such loans/deposits. The AO stated that these details were called for since the assessee is not entitled to deduction u/s 80P of the Act in respect of income earned on such loans or deposits given to nominal member in the light of decision of Hon'ble Supreme Court judgment rendered in the case of Citizen Cooperative Society Vs. ACIT in Civil Appeal No.10245/2017. The AO noticed that the total amount of interest received on account of transaction with the nominal members of Rs.29,66,351/- and held that the assessee is not enti....
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....nd concluded that the income of Rs.6,58,026/- earned by the assessee by way of interest from institutions is not eligible for deduction u/s 80P(2)(a)(i). To this extent the PCIT held that order of the AO is erroneous and prejudicial to the interest of revenue and issued directions to the AO to revise the assessment order. 5. Aggrieved, the assessee is in appeal before us. 6. The Ld.AR submitted that the coordinate bench of the Tribunal in the case of Kakkabe VSSN Bank Ltd., in ITA No.490/Bang/2021 dated 28.02.2022 has dealt with the similar issue, where the Hon'ble Tribunal has remanded the issue back to the file of the AO for de novo assessment with certain directions. The Ld AR therefore prayed that a similar direction may be given in a....