TaxTMI 
TaxTMI 
2026 (7) TMI 1701
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....ection 144B of the Income Tax Act, 1961 for the Assessment Year 2018-19. 2. The Revenue has raised various grounds of appeal challenging the action of the learned CIT(A) in allowing the assessee's appeal. The principal grievance of the Revenue is that the learned CIT(A) erred in holding that the consequential assessment framed under section 143(3) read with section 263 does not survive after the order passed under section 263 was quashed by the Tribunal. The Revenue has further challenged the findings of the learned CIT(A) on the ground that deduction under section 80P(2)(d) in respect of interest earned from deposits with co-operative banks and commercial banks was not allowable and that such interest was liable to be assessed under the....
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....venue, the learned Principal Commissioner set aside the assessment with a direction to the Assessing Officer to frame a fresh assessment after proper verification. 5. Pursuant to the aforesaid revisional order, the Assessing Officer framed the consequential assessment under section 143(3) read with section 263 read with section 144B. During the reassessment proceedings, the Assessing Officer noticed that the assessee had earned interest income aggregating to Rs. 9,27,95,245/- from deposits maintained with co-operative banks as well as commercial banks. The Assessing Officer held that such interest did not arise from the operational activity of providing credit facilities to members but represented income earned by deploying surplus funds....
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....ent lost its legal foundation and could not independently survive. The learned CIT(A), therefore, held that the assessment order itself had become unsustainable and accordingly allowed the assessee's appeal. Aggrieved by the aforesaid findings, the Revenue is in appeal before us. 8. We have carefully considered the rival submissions, perused the orders of the authorities below and the entire material available on record. The controversy involved in the present appeal lies in a narrow compass. The assessment impugned before the learned CIT(A) was admittedly framed under section 143(3) read with section 263 read with section 144B pursuant to the revisional order passed by the learned Principal Commissioner under section 263. The learned CI....
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....urther notice that while quashing the order under section 263, the coordinate Bench of the Tribunal has categorically held that the learned Principal Commissioner was not justified in exercising revisional jurisdiction under section 263. The Tribunal recorded a specific finding that during the original assessment proceedings the Assessing Officer had called for complete details regarding the claim of deduction under section 80P and the assessee had furnished detailed submissions together with judicial precedents supporting its claim. The coordinate Bench further observed that the controversy regarding allowability of deduction under section 80P on such interest income has been a subject matter of considerable judicial debate and, therefore,....