TaxTMI 
TaxTMI 
2024 (4) TMI 449
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....enue. The order needs cancellation. 3. The Ld. C.I.T. has erred in law and facts in not providing adequate and reasonable opportunity to the appellant. The order needs cancellation. 4. The Ld. C.L.T. has erred in law and facts in not considering the aspect that all relevant documents and information with full details were produced before the Ld. A.O. and therefore no action U/s. 263 can be levied legally. The order needs cancellation. 5. The Ld. C.I.T. has erred in law and facts in not considering the aspect that all relevant documents and information with full details were also submitted before the Ld. A.O. and therefore no action U/s. 263 can be levied legally. The order needs cancellation. 6. The Ld. C.I.T. has erred in law and facts in not considering that as per statutory position fully settled under the law, there was no scope to consider action U/s. 263. The order needs cancellation. 7. Taking into consideration the legal, statutory and factual aspect, no action U/s. 263 ought to have been taken. The same needs cancellation. 8. Without prejudice, initiation of action taken U/s. 263 is bad in law, illegal and void. The ord....
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.... dated 08.11.2023 3.3. Therefore pleaded to quash the Revision order passed by PCIT and allow the Assessee appeal. 4. Per Contra Ld CIT DR Shri. Shramdeep Sinha appearing for the Revenue strongly supported the revision order passed by the Ld PCIT and filled a detailed submission as follows: "It is important to note that Hon Gujarat High Court in their decision in Katlary Kariyana (supra) has approved further improved the decision of Hon. Karnataka High Court of Totagars (2017) by clearly stating that "co-operative Banks are not species of Genus Cooperative Society." Though the issue has not yet travelled to Hon. SC, as far as Gujarat is concerned, the issue is settled by the decision of Hon. Gujarat High Court. Thus Ld. ITAT is bound by the decision of Hon. Gujarat High Court, as and when the principal question is same as stated in para 2.4 of the Katlary Kariyana (2022), repeated for ready reference: "2.4 The principal ground which was taken into consideration was as regards the deduction claimed by the assessee society in terms of provisions of Section 80P(2)(d) of the Income Tax Act, as not admissible being interest received on FDR's from the cooperat....
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.... writ applicant cooperative Society is incorporated as Cooperative Society under the Gujarat Cooperative Societies act, 1961 with the main object of accepting deposits and providing credit facilities to its members. Thus, there is no doubt that the writ applicant being society engaged in providing credit facilities is entitled to the deductions available in terms of section 80P(2)(a)(i) of the Income Tax act, 1961. The writ applicant has placed on record the original computation of Income along with audit report. Bare perusal of the same reveals that the writ applicant has disclosed Gross total income of Rs. 2117353 as against that the writ applicant has disclosed deductions under Chapter VI-A of Rs. 2117353 , thereby declaring Net taxable income 'NIL'. Now, under head of Gross Total Income, the deductions (Chapter VI-A) refers to section 80P providing credit facilities to its members is shown Rs. 2121935 whereby the assessee writ applicant has claimed eligible deductions of Rs. 2121935 by pressing Allowable deductions of Rs. 2117353. The Audit report of the writ applicant further explains return of Income wherein amount of Rs. 18,08,444:00 is shown under the head of intere....
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....rative Sale Society Limited v. ITO , reported in MANU/SC/0095/2010: (2010) 322 ITR 283 SC : (2010) 3 SCC 223 for the preceding years, namely Assessment Years 1991-1992 to 1999-2000 (except Assessment Year 1995-1996) holding that such interest income earned by the assessee was taxable under the head 'Income from Other Sources' under Section 56 of the Act and was not 100% deductible from the Gross Total Income under Section 80P of the Act, is not applicable to the present Assessment Years 2007-2008 to 2011-2012 involved in the present appeals and therefore, whether the Income Tax Appellate Tribunal as well as CIT (Appeals) were justified in holding that such interest income was 100 percent deductible under section 80P(2)(d) of the Act?" That while holding the aforesaid issues in favour of the revenue department, the Court followed the decision of the Hon'ble Supreme Court in the case of same assessee which was later on followed by this Court in the case of State Bank of India Vs. CIT, reported in MANU/GJ/1053/2016 : (2016) 389 ITR 578 (Guj), relevant paras are reproduced as under : "16. In case where the co-operative society is a bank, one of its objects....
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....lant wants to avail of the benefit of deduction of such interest income, it is always open for it to deposit the surplus funds with a co-operative bank and avail of deduction under section 80P(2)(d) of the Act. 17. Section 71 of the Gujarat Co-operative Societies Act, 1961 permits a society to invest or deposit its fund in the State Bank of India. Therefore, while investment in the State Bank of India is permissible under section 71 of that Act, there is no statutory obligation cast upon the appellant to deposit funds as a part of its business. The said provision also permits investment of funds in any co-operative bank or any banking company approved for this purpose by the Registrar on such conditions as the Registrar may from time to time impose. However, insofar as the provisions of the Income Tax Act are concerned, under section 80P(2)(d) thereof, it is only the in- come by way of interest or dividends derived by a cooperative society from its investments with any other cooperative society which is required to be deducted while computing the total income of the assessee." Thus, following the decision of the Hon'ble Supreme Court in the case of Totagar'....