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| The Tax Publishers2020 TaxPub(DT) 0854 (Ahd-Trib) INCOME TAX ACT, 1961
Section 263
Issue regarding eligibility of deduction under section 80P on interest earned from deposits placed with co-operative banks, could not be regarded to be free of any debate to the least. Therefore, action of AO in granting relief under section 80P could not be dubbed as erroneous per se and since, the twin conditions for invoking provisions of section 263 were clearly not satisfied, order of CIT under section 263 set aside.
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Revision under section 263 - Erroneous and prejudicial order - Issue regarding eligibility of deduction allowed by AO under section 80P not being free of any debate -
CIT in exercise of revisional power vested under section 263 had held respective orders of AO passed under section 143(3) to be erroneous and prejudicial to the interest of revenue on the ground that interest earned by assessee society on deposits placed in Scheduled Co.-op. Bank was not eligible for deduction under section 80P(2).Held: Issue regarding eligibility of deduction under section 80P on interest earned from deposits placed with co-operative banks, could not be regarded to be free of any debate to the least. In the circumstances, action of AO in granting relief under section 80P could not be dubbed as erroneous per se. Therefore, the twin conditions for invoking provisions of section 263 were clearly not satisfied and order of CIT under section 263 set aside.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
IN THE ITAT, AHMEDABAD BENCH
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