TaxTMI 
TaxTMI 
2022 (6) TMI 123
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....x Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal: 1. The learned Principal Commissioner of Income-tax -Rajkot - 1, Rajkot erred in holding that the assessment order dated 19-12-2019 passed u/s 143(3) of the Act was erroneous and prejudicial to the interest of revenue and thus erred in assuming jurisdiction u/s 263 of the Act, in the light of show cause notice and the order passed u/s 263 of the Act and hence the impugned order is bad in law. 2. The learned Principal Commissioner of Income-tax, Rajkot - 1, Rajkot erred in setting aside the assessment order framed u/s 143(3) of the Act by holding that the A.O. did not c....
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.... the concurrence of the learned DR appearing on behalf of the revenue. There was no objection raised by the learned DR, if the matter is taken up for hearing today only. Upon receiving the concession of the learned DR, we decided to take up the main appeal of the assessee. 5. The only issue raised by the assessee is that the learned PCIT erred in holding the assessment framed by the AO under section 143(3) of the Act as erroneous insofar prejudicial to the interest of Revenue under the provisions of section 263 of the Act. 6. The facts in brief are that the assessee in the present case is a co-operative society and engaged in the business of providing credit facilities to its members. The assessee in the year under consideration decla....
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....(2)(d) cannot be extended to the interest earned from cooperative bank as the same has been excluded from the co-operative society by insertion of section 80P(4) of the Act by the Finance Act 2006. Accordingly, the Learned Pr. CIT was of the view the AO without proper application of law and due verification, allowed the deduction claimed by the assessee with respect to the interest income from the co-operative bank which amounts to an error committed by the AO. Accordingly, the ld. PCIT set aside the assessment order by holding the same as erroneous insofar prejudicial to the interest of the revenue. 8. Being aggrieved by the order of the learned PCIT, the assessee is in appeal before us. 9. The learned AR before us inter-alia contend....
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....ive bank. The relevant extract of the judgement of Hon'ble Gujarat High Court in case of in case of CIT vs. Sabarkantha District Cooperative Milk Producers Union Ltd. in Tax Appeal No. 473 of 2014 reads as under: "Considering Section 80(P)(2)(d) of the Act when the only requirement was that the income should be received from investment in Cooperative Societies and the Cooperative Bank which in the present case has been fulfilled, it cannot be said that the learned Tribunal has committed an error in deleting the disallowance of Rs. 1,42,19,515/- under section 80(P)(2)(d) of the Act." 12.1 Based on the above, it is transpired that the AO has taken one of the possible view for allowing the deduction to the assessee under the provis....