| The Tax Publishers2019 TaxPub(DT) 8002 (Mum-Trib) INCOME TAX ACT, 1961
Section 263
Where AO while framing assessment under section 143(3) had taken a possible view, and therein concluded that assessee would be entitled for claim of deduction under section 80P(2)(d) on interest income earned on investments/deposits with co-operative banks, the CIT was not justified in exercising his revisional jurisdiction under section 263 concluding that the said assessment order was erroneous and prejudicial to the interest of Revenue.
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Revision under section 263 - Erroneous and prejudicial order - Possible view taken by AO -
AO passed assessment order under section 143(3) in case of assessee-cooperative society. CIT invoked his jurisdiction under section 263 and observed that assessee showed interest income from FDs with co-operative banks, against which it claimed deduction under section 80P(2)(d), which was allowed by AO. Observing, that as co-operative banks were commercial banks and not co-operative societies, therefore, the CIT was of the view that assessee was not eligible for claim of deduction under section 80P(2)(d). Accordingly, he concluded that the assessment order passed by AO under section 143(3) was erroneous and prejudicial to the interest of Revenue. Held: In view of various decisions, it could be said that interest income earned by a cooperative society on its investments held with a co-operative bank would be eligible for claim of deduction under section 80P(2)(d). Therefore, as AO while framing assessment under section 143(3) had taken a possible view, and therein concluded that assessee would be entitled for claim of deduction under section 80P(2)(d) on interest income earned on investments/deposits with co-operative banks, therefore, the CIT was not justified in exercising his revisional jurisdiction under section 263 concluding that the said assessment order was erroneous and prejudicial to the interest of Revenue.
Distinguished:Totgars Cooperative Sale Society Limited v. ITO (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC)
REFERRED : Pr. CIT v. Totagars Co-Operative Sale Society (2017) 395 ITR 611 (Karn) : 2017 TaxPub(DT) 1748 (Karn-HC) Pr. CIT v. Totagars Co-operative Sale Society (2017) 392 ITR 0074 (Karn) : 2017 TaxPub(DT) 0677 (Karn-HC) State Bank of India (SBI) v. CIT ((2016) 389 ITR 578 (Guj) : 2016 TaxPub(DT) 3564 (Guj-HC) K. Subramanian & Anr. v. Siemens India Limited & Anr. (1985) 156 ITR 11 (Bom) : 1985 TaxPub(DT) 0158 (Bom-HC) Kaliandas Udyog Bhavan Premises Co-op Society Ltd. v. ITO [ITA 6547/Mum/2017, dated 25-4-2018] : 2018 TaxPub(DT) 3128 (Mum-Trib) Merwanjee Cama Park Co-op Housing society Ltd. v. ITO (2018) 062 ITR (Trib) 0770 (Mum) : 2018 TaxPub(DT) 1580 (Mum-Trib) Sea Green Co-operative Housing Society Ltd. v. ITO [ITA No.1343/MUM/2017 (AY. 2013-14), dt. 31-3-2017] Lands End Co-operative Housing Society Ltd. v. I.T.O. ITA No. 3566/MUM/2014 : 2016 TaxPub(DT) 2383 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, MUMBAI BENCH
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