TaxTMI 
TaxTMI 
2023 (8) TMI 1434
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.... for Assessment Year 2017-18. 2. The assessee has taken the following grounds of appeals:- "1. The grounds raised in this appeal are without prejudice to one another. 2. Order of the learned PCIT Rajkot 1 (hereinafter called as PCIT) reopening the assessment u/s 263 is totally bad on facts as well as in law. Learned PCIT ought to have considered the fact that the assessee is duly scrutinized and all the aspects were discussed in details during the course of assessment proceedings under Section 143(3). So action of the reopening of assessment under Section 263 is not justified. 3. Learned PCIT has grievously erred in making Disallowance of claim made by the assessee amounting to Rs 30,18,710/ under Section 80P(2....
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....sequently, Principal CIT initiated 263 proceedings on the ground that firstly, during the year under consideration, the assessee had received interest income on fixed deposits amounting to Rs.30,18,710/- from Rajkot District Cooperative Bank Ltd. The Principal CIT was of the view that various judicial precedents have held that interest income received by the assessee from cooperative Bank has to be assessed as "income from other sources" and assessee is not eligible for deduction under Section 80P(2)(a)(i)/80P(2)(d) of the Act. Accordingly, the Assessing Officer erred in law in not taxing the aforesaid income. Further, Principal CIT observed that the assessee has also not deposited the amount of PF contribution amounting to Rs.41,982/- rece....
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....ligible for deduction under Section 80P(2) of the Act. Further, regarding the late deposit of provident fund, the counsel for the assessee submitted that the assessee had deposited the PF within the due dates prescribed under the respective laws and he drew our attention to page 250 of the paper book, containing the challan as proof of payment that the PF has been deposited within the due prescribed time. Further, the counsel for the assessee submitted that there was a mistake in the Tax Audit Report (Form 3CD) in which the auditors have incorrectly mentioned that EPF was deposited beyond the due prescribed date. Thirdly, regarding the interest on income tax refund amounting to Rs.45,684/-, the counsel for the assessee submitted that the af....
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....se of Surat Vankar Sahakari Sangh Ltd. 72 taxmann.com 169 (Gujarat), the Hon'ble High Court held that Assessee-co-operative society was eligible for deduction under Section 80P(2)(d) in respect of gross interest received from co-operative bank without adjusting interest paid to said bank. In the case of Prime Co Op Bank Ltd. 49 taxmann.com 16 (Gujarat), the High Court held that Interest income received by a co-operative bank on its voluntary reserve in bank, bonds and small scale industrial corporation is eligible for deduction under Section 80P. The Hon'ble Gujarat High Court in the case of State Bank of India Vs. CIT (2016) 389 ITR 578 (Guj), held that the interest income earned by a co-operative society on its investments held with a....
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....essing Officer has not enquired into the evident delay in deposit of PF as is visible from the tax audit report. Though, the counsel for the assessee has submitted that this was owing to a mistake on part of the tax auditors, however, the Assessing Officer should have enquired into this apparent mistake which is coming from the tax audit report filed by the assessee, which clearly mentions that there has been a delay in deposit of PF on part of the assessee. Further, regarding the interest on income tax refunds, we observe that the Assessing Officer has not enquired into this aspect at all. Though, the counsel for the assessee has submitted that the aforesaid amounts have been offered to tax by the assessee in its return of income, however,....