2022 (12) TMI 1085

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....l 1 The grounds of appeal mentioned hereunder are without prejudice to one another. N.A. As appeal is against the validity of revisional jurisdiction of Pr. CIT. 2 The order passed by Pr. Commissioner of Income-tax, Rajkot-1 [hereinafter referred as to the "PCIT"] is bad in law, invalid and requires to be quashed, the same may kindly be quashed. N.A.As appeal is against the validity of revisional jurisdiction of Pr. CIT. 3 The ld. PCIT erred in law and on facts in arriving at a conclusion to the effect that the assessment order passed by the A.O. was erroneous as well as prejudicial to the interest of the revenue on the ground that such order was passed without verifying the allowability of deduction u/s. 80P(2)(d) of the Incom....

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....ion to the assessee under the aforesaid sections. The Principal CIT was of the view that in light of the case of Principal CIT v. Totagars Cooperative Sale Society 83 Taxman.com 140 (Karnataka), the assessee is not eligible for deduction under section 80P(2)(a)(i)/ 80P(2)(d) of the Act on interest/dividend from other co-operative banks. The Principal CIT further observed that the ITAT Ahmedabad in the case of Shriram Cooperative Credit Society Ltd v. ITO in ITA number 98/Ahmedabad/2017 dated 30-01-2020 has decided the issue in favour of the Revenue by disallowing the claim of deduction under section 80P(2)(d) of the Act on the interest received from the cooperative banks. Accordingly, after taking the submissions of the assessee on record, ....

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....ve bank and avail of deduction under section 80P(2)(d) of the Act". Therefore, since the issue has been decided in favour of the assessee by the jurisdictional High Court, coupled with the fact that the AO had also enquired into this aspect during the course of assessment proceedings, and after due application of mind had decided the issue in favour of the assessee, this is not a fit case for initiation of proceedings under section 263 of the Act. 5. In response, DR relied upon the observations made by the Principal CIT in the 263 order. 6. We have heard the rival contentions and perused the material on record. The issue for consideration before us is whether the Principal CIT is correct in holding that the order passed by the Ld. Assessi....