2026 (8) TMI 1341

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....eir return of income on 15/01/2021. The assessee had claimed deduction u/s. 80P(2)(a)(i) of the Act on the gross total income and declared a Nil taxable income. The assessee's case was selected for complete scrutiny under CASS for verifying the deduction from the total income under Chapter VIA, high creditors, high interest expenditure etc. The assessment has been completed u/s. 143(3) of the Act in which the return of income has been accepted as such. Subsequently, the AO by relying on the judgment of the Hon'ble Supreme Court in the case of M/s. Totgars Co-operative Sale Society Ltd. vs. ITO reported in 322 ITR 283 and also the Hon'ble Jurisdictional High Court judgment in the case of PCIT vs. Totgars Cooperative Sale Society Ltd. was of ....

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....ses for earning such interest income. 4. As against the said order, the assessee is in appeal before this Tribunal. 5. At the time of hearing, the Ld.AR submitted that the rectification order is not correct since there is no error apparent on the face of the record. The Ld.AR also submitted that the assessee had furnished all the details before the AO while completing the complete scrutiny assessment and the AO also verified all the details and granted the deduction u/s. 80P(2)(a)(i) of the Act. The Ld.AR further submitted that, therefore the AO has no jurisdiction to initiate proceedings u/s. 154 of the Act in which the deduction allowed was reversed. The Ld.AR submitted that the issue is a debatable one and therefore, the disallowan....

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....business income and attributable to the business activities of the assessee. In fact, the said return was taken up for complete scrutiny and based on the submissions made by the assessee, the AO had accepted the said return and to that effect, an order u/s. 143(3) was made. Thereafter, the AO found that the said claim was not in accordance with the judgments of the Hon'ble Supreme Court as well as the Hon'ble Jurisdictional High Court and therefore proposed to disallow the said deduction claimed u/s. 80P(2)(a)(i) of the Act under the provisions of section 154 which is a provision for rectifying the errors apparent on the face of the record. In spite of the replies filed by the assessee, the AO had disallowed the deduction in respect of the ....