2022 (7) TMI 494

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....e orders of the Learned Principal Commissioner of Income Tax -1, Rajkot [Ld. PCIT) in short] arising in the matter of assessment order passed under s. 263 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") relevant to the Assessment Year (A.Y.) 2017- 18 & 2018-19. Since issues involved in all these appeals are identical, we proceed to dispose of all the appeals by this common order for the sake of convenience and brevity. First we take ITA No. 116/Rjt/2022 for A.Y. 2017-18, an appeal by the assessee in the case of Galaxy Credit Co-operative Society Limited, Wankaner. 2. The only interconnected issue raised by the assessee is that the learned Principal CIT erred in holding the assessment framed under section 143(3) of the A....

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....y, the learned DR before us vehemently supported the order of the learned PCIT. 7. We have heard the rival contentions of both the parties and perused the materials available on record. At the outset we note that this tribunal in the case of Shree Keshav Co-operative Credit Society Limited (supra) involving identical facts and circumstances has decided the issue in favour of the assessee. The relevant finding of the ITAT is reproduced as under: We have heard the rival contentions of both the parties and perused the materials available on record. From the preceding discussion, we note that the different Hon'ble High Courts have taken different view with respect to the deduction of the interest income earned by the assessee from the co-ope....

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....ovisions of section 263(1) cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer, and it is only when the order is erroneous that the section will be attracted. When two views are possible and the Assessing Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue unless the view taken by the Assessing Officer is unsustainable in law. It was not shown how the method followed by the assessee to divide the expenses for the purpose of claiming relief under section 80HH was improper or unacceptable. The Assessing Officer as well as the Tribunal had found that the expenses were apportioned on a rati....

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....not sustainable and therefore we quash the same. Hence the ground of appeal of the assessee is allowed. 7.3 In the result, the appeal filed by the assessee is allowed. Coming to the other appeal of the assessee bearing ITA No. 156/Rjt/2022 for A.Y 2018-19 in the case of Upleta Utpadak Sahakari Mandl i Limited, Upleta 8. At the outset, we note that the issues raised by the assessee in its grounds of appeal are identical to the issues raised by the assessee in the case of Galaxy Credit Co-operative Society Limited, Wankaner bearing ITA No. 116/Rjt/2022 for the assessment year 2017-18. Therefore, the findings given in ITA No. 116/Rjt/2022 shall also be applicable for the issues raised by the assessee in the above mentioned appeal. The appea....