2024 (1) TMI 949

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....g Officer under section 143(3) of the Income Tax Act, 1961 (in short 'the Act'), dated 30.06.2016. 2. The grounds of appeal raised by assessee are as follows:- "1. On the facts and the circumstances of the case as well in law, the CIT(Appeals) erred in confirming the order passed by Deputy CIT, Circle 2(3), Surat (for the sake of brevity "The AO") u/s 143(3) of the Act for the income assessed at Rs. 1,25,31,690/- against the returned income at Rs. Nil denying the deductions claimed under Chapter VIA of the Act for the aggregate amount of Rs. 3,16,59,726/-(subject to the availability of Gross Total Income), purely on misinterpretation and misconstruction of the provisions of law, misleading, mis conceptual, arbitrary and perverse....

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....e AO to invoke the provisions of Section 80P(4) of the Act and therefore, the assessment order u/s 143(3) passed by the AO denying the deduction claimed under Chapter VIA of the Act to the extent of Rs. 3,16,59,426/- (subject to the Gross Total Income) on misconceived and an erroneous inference and purely on misinterpretation of the law settled on the issue of deduction u/s 80P(2)(d) of the Act in favour of the co.operative society, is without jurisdiction, perverse, bad in law, void ab initio, unsustainable and hence, liable to be quashed. 4. On the facts and in the circumstances of the case as well in law, both the lower authorities have erred in denying the benefit of deduction u/s 80P(2)(d) of the Act claimed for Rs. 1,11,72,52....

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....rbitrary, and thus, liable to be quashed. 6. Your appellant further reserves its right to add, alter, amend or modify any of the aforesaid grounds before or at the time of hearing of an appeal." 3. At the outset, Learned Counsel for the assessee, submitted that assessee has not claimed Nationalised Bank interest, to the tune of Rs. 1,25,31,686/-, as a deduction under section 80P(2)(d) of the Act. The assessee has only claimed Co-Operative Bank`s interest and Co-Operative Dividends, under section 80P(2)(d) of the Act. The ld Counsel took us through the computation of total income of the assessee and explained that assessee has claimed deduction 80P(2)(d) of the Act only on interest and dividend income from co-operative societies ....