TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 330
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....r scrutiny for AY 2020-21 and accordingly, the assessment order came to be passed on 13-09-2022 Further, the penalty in consequence to the assessment proceedings under section 270A of the Act came to be passed on 20-03-2023. 5. That I was further informed that society's Income Tax matters were handled by Tax Consultant Mr. Balasaheb Amate (Mr. Amate). Mr. Amate also informed me that due to his limited understanding of Income Tax Appellate proceedings the society's Appeal for AY 2020-21 against Assessment order and Penalty order u/s 270A of the Act were handed to another tax consultant. 6. That at the time of filing the Income Tax Return for A.Y. 2025-26, while reviewing the ITBA Portal, Mr. Amate noticed and informed me that the Ld. CIT- Appeals had already passed orders in the said appeals 7. That upon my enquiry, Mr. Amate informed me that the Society did not receive the desired relief. 8. That Mr. Amate further apprised me that, as the matters were handed over to another tax consultant, he was not following up on these appeals on ITBA portal and hence was unaware of further development. He further informed me that, despite his repeated....
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....rtainable, the date of the order itself has been considered as the date of receipt for the purpose of computing limitation. Accordingly, there is delay of approximately 318 days after expiry of limitation in filing the appeal against the quantum order and the penalty appeal for AY 2020-21, as well as the delay of approximately 481 days after expiry of limitation in filing the appeal against the order u/s 263 of the Act passed by the Ld. PCIT-1, Pune for AY 2018-19, before the Hon'ble Income Tax Appellate Tribunal, Pune. However, the fact of passing of the appellate orders or order u/s 263 has come to the knowledge of the assessee only somewhere in the first week of August 2025 and thereafter promptly these appeals are filed within the period of 60 days. 16. That thus, I, on behalf of the Assessee Society, humbly pray that in view of the above genuine facts and circumstances and bonafide reasons, which were unintentional, non-deliberate and beyond the control of the Assessee Society, may kindly be considered sympathetically and the delay in filing the appeal may please be condoned. 17. That in view of above, it is submitted that the delay in filing the appeal m....
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....e outset submitted that in light of settled judicial precedents the assessee is eligible for deduction u/s.80P(2)(d) of the Act for the interest earned on investments held with cooperative banks. So far as income tax paid at Rs. 15,000/- and debited to the profit and loss account is concerned, he submitted that the assessee is eligible for deduction u/s.80P(2)(a)(i) of the Act and even if the income tax expenses is added back to the net profit as per the profit and loss account there will be no loss to the Revenue as the claim of deduction u/s.80P(2)(a)(i) of the Act will increase by the alleged disallowable amount. 7. On the other hand, ld. DR supported the order of ld. PCIT 8. We have heard the rival contentions and perused the record placed before us. The grievance of the assessee is that ld. PCIT erred in assuming the jurisdiction u/s.263 of the Act and further erred in holding that order of the Assessing Officer is erroneous and prejudicial to the interest of Revenue u/s.263 of the Act. 9. We find that the provision of Section 263 of the Act has direct bearing on the issue raised before us, therefore, it is pertinent to take note of this section which reads as under: ....
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....unal, National Tax Tribunal, the High Court or the Supreme Court. Explanation- In computing the period of limitation for the purposes of sub-section (2), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded." 9.1. On a bare perusal of the sub section-1 would reveal that powers of revision granted by section 263 to the learned Commissioner have four compartments. In the first place, the learned Commissioner may call for and examine the records of any proceedings under this Act. For calling of the record and examination, the learned Commissioner was not required to show any reason. It is a part of his administrative control to call for the records and examine them. The second feature would come when he will judge an order passed by an Assessing Officer on culmination of any proceedings or during the pendency of those proceedings. On an analysis of the record and of the order passed by the Assessing Officer, he formed an opinion that such an order is erroneous in so far as it is prejudicial to the....
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.... not earned by a person is assessed as income in his hands on his so offering, the order passed by the Assessing Officer accepting the same as such will be erroneous and prejudicial to the interests of the revenue - Rampyari Devi Saraogi v. CIT [1968] 67 ITR 84 (SC) and in Smt. Tara Devi Aggarwal v. CIT [1973] 88 ITR 323 (SC). [Emphasis Supplied]" 10. On going through the above provisions of section 263 and on examining the issues raised in the instant appeal, we find that so far as the first issue is concerned relating to the non examination of interest earned on investments held with cooperative banks, we find that this issue is no longer res integra by virtue of plethora of decision passed by this Tribunal and even the High Courts. 11. There is no dispute that the assessee is a registered cooperative society and is providing credit facilities to its Members and derived interest income on investments kept with Cooperative Societies/Banks. The provisions of section 80P(2)(d) of the Act, provides for deduction towards any income by way of interest or dividend derived by a co-operative society from its investment with any other co-operative society. The term Cooperative Societ....