| The Tax Publishers2024 TaxPub(DT) 636 (Ind-Trib) INCOME TAX ACT, 1961
Section 263
Order of AO, allowing deduction under section 80P(2)(d) on the interest received by assessee from the deposit made with Co-operative Central Bank could not be termed as erroneous and prejudicial to the interest of the Revenue.
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Revision under section 263 - Erroneous and prejudicial order - Pr. CIT questioned allowance of deduction under section 80P(2)(d) as regards interest income earned by assessee-society from deposits with co-operative banks -
Pr. CIT treated order passed by AO as erroneous and prejudicial to the interest of the Revenue on the ground of AO having allowed deduction under section 80P(2)(d) as regards interest income earned by assessee-society from deposits with co-operative banks. Held: Though co-operative banks, pursuant to the insertion of sub-section (4) to section 80P would no more be entitled for claim of deduction under section 80P however as a co-operative bank continues to be a co-operative society registered under the Co-operative Societies Act, 1912 or under any other law for the time being in force in any State for the registration of co-operative societies, therefore, interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for claim of deduction under section 80P(2)(d). Therefore, order of AO allowing deduction under section 80P(2)(d) on the interest received by assessee from the deposit made with Co-operative Central Bank could not be termed as erroneous and prejudicial to the interest of the Revenue.
Relied :Lands End Co-operative Housing Society Ltd. v. ITO (2017) 46 CCH 52 (Mum) : [ITA No. 3566/Mum/2014, dt. 15-1-2016] : 2016 TaxPub(DT) 2383 (Mum-Trib), Sea Grean Co-operative Housing and Society Ltd. v. ITO [ITA No.1343/Mum/2017, dt. 31-3-2017] : 2022 TaxPub(DT) 6884 (Mum-Trib), Merwanjee Cama Park Co-operative Housing Society Ltd. v. ITO [ITA NO. 6139/Mum/2014, dt. 27-9-2017] : 2018 TaxPub(DT) 1580 (Mum-Trib), Kaliandas Udyog Bhavan Pemises Co-op. Society Ltd. v. ITO 2018 TaxPub(DT) 3128 (Mum-Trib), Pr. CIT & Anr. v. Totagars Co-operative Sale Society (2017) 392 ITR 74 (Karn) : 2017 TaxPub(DT) 0677 (Karn-HC), State Bank of India v. CIT (2016) 389 ITR 578 (Guj) : 2016 TaxPub(DT) 3564 (Guj-HC), Pr. Commissioner of Income Tax and Anr. v. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) : 2017 TaxPub(DT) 0677 (Karn-HC), State Bank of India v. CIT (2016) 389 ITR 578 (Guj) : 2016 TaxPub(DT) 3564 (Guj-HC), Pr. CIT & Anr. v. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) : 2017 TaxPub(DT) 0677 (Karn-HC) and State Bank Of India v. CIT (2016) 389 ITR 578 (Guj) : 2016 TaxPub(DT) 3564 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2018-19
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