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2020 (12) TMI 401 - ITAT MUMBAIRevision u/s 263 - CIT setting aside order by ACIT u/s. 143(3) - deduction u/s 80P on account of interest received by assessee from Saraswat Co-op Bank Ltd. as well as from Maharashtra State Co-operative Bank denied - HELD THAT:- Assessee was subjected to limited scrutiny assessment vide notice dated 27/07/2016. One of the reasons for selection of scrutiny was deduction under Chapter-VI-A. Accordingly, during the course of assessment proceedings, the assessee was directed to explain the deduction claimed under Chapter-VI-A. The assessee, in its submissions dated 09/08/2016 as well as 22/12/2017 filed complete details of interest so earned along with note on deduction claimed u/s 80P. Finally, after considering the same, Ld. AO chose to accept the same and therefore, allowed the same specifically while framing the assessment. These facts would show that Ld. AO was clinched with the issue and had taken a possible view in the matter. The view was in line with the various judicial decisions prevailing at the time of making the assessment and the same could not be said to be perverse or against the law, in any manner. There was due application of mind to the issue by Ld. AO. Hon’ble Supreme Court in Malabar Industrial Co. Ltd. V/s CIT [2000 (2) TMI 10 - SUPREME COURT] has held that the phrase 'prejudicial to the interests of the revenue' has to be read in conjunction with an erroneous order passed by the AO. Every loss of revenue as a consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interests of the revenue - revisional jurisdiction could not be held to be valid under law. - Decided in favour of assessee.
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