TaxTMI 
TaxTMI 
2024 (2) TMI 840
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....ated 19.03.2023 passed for Assessment Year 2018-19. 2. The assessee has taken the following grounds of appeals:- "1. The order u/s. 263 of the Act is bad in law. 2. The learned Pr. CIT has erred in law as well as on facts in not considering the submissions of the appellant on the strength of which the assessment order was neither erroneous nor prejudicial to the interest of revenue and therefore, the provisions of Section 263 of the Act were not applicable to the case of the appellant. 3. The learned Pr. CIT has erred in law as well as on facts in setting aside the assessment order passed by the ld. A.O. u/s. 143(3) and directing de-novo assessment for verification of the eligibility of deduction claimed of Rs.....
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....ce u/s. 40(9) (Contribution to Fund, etc.) iii. Disallowance u/s. 40A(7) (Gratuity provision) 6. However, Ld. PCIT exercised the jurisdiction under Section 263 of the Act in respect of deduction claimed under Section 80P of the Act by the assessee. It was submitted that the said claim of deduction was not within the purview of examination of the Assessing Officer in limited scrutiny assessment and therefore, the order of the AO cannot be treated as erroneous. In view of this, it was submitted that the issue taken up by the ld. PCIT for revision under Section 263 was beyond the scope of limited scrutiny and therefore, the impugned order passed by the Ld. PCIT under Section 263 of the Act deserves to be quashed. Reliance was place....
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....jarat High Court in case of Surat Vankar Sahakari Sangh Ltd. - 72 taxmann.com 169 (ii) Rajkot ITAT in case of M/s. Surendranagar District Cooperative Milk Producers Union Ltd. vs. DCIT - 111 taxmann.com 69 (iii) Hon'ble Karnataka High Court in case of PCIT vs. Totagars Co-operative Sale Society - 78 taxmann.com 169 9. Further, it was submitted that in the most recent decision dated 18.07.2023 in the very same case of Totagar Co-operative Sale Society Ltd., Bangalore ITAT in ITA No. 376 to 379/Bang/2023 held that income earned by a cooperative society on its investments held with a cooperative bank would be eligible for claim of deduction under Section 80P(2)(d) of the Act. In this decision, the earlier SC judgment and K....
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....storing to proceedings under section 263 of the Act. In this case, the assessment proceedings had been initiated for examining the following issues: (i) Investments/Advances/Loans (ii) Disallowance u/s. 40(9) (Contribution to Fund, etc.) (iii) Disallowance u/s. 40A(7) (Gratuity provision) 13. However, in the 263 proceedings, the PCIT sought to revise the assessment order on the ground of non-consideration of claim of deduction of interest under Section 80P of the Act. In our view, this is not permissible in light of various judicial precedents, on the subject, as highlighted in the preceding paragraphs which have held that it is not open to the PCIT, while exercising powers under Section 263 of the Act, to find....