TaxTMI 
TaxTMI 
2024 (4) TMI 449
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.... 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 order needs cancellation. 9. Without prejudice, the action taken U/s. 263 is bad in law, illegal and v....
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....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 cooperative banks and nationalized banks." The appellant, Lodhika Seva Sahkari Samiti has deposited its surplus funds with the Rajkot Distrct Co- operative bank (RDC). This is borne out from the respon....
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.... 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 interest derived from investment and Rs. 69,33,052 under the head of income derived from credit. The record of limited scrutiny reveals that under original assessment, the AO has mainly examined two issues viz. (a) Sales Turnover Mismatch (b) De....
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....as 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 would be to carry on the general business of banking. Like other banks, money would be its stock-in-trade or circulating capital and its normal business is to deal in money and credit. The business of such a bank does not consist only of receiving deposits and lending money to its membe....
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....ciety 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's Co-operative Sale Society ltd., (2010) 322 ITR 283(SC) it was held that interest earned from investments made in any bank, not being cooperative society, is not deductible under section 80P(2) (d) of the act. 14. This Court further finds that by virtue of amendment in section 194A(3)(v) of the In....