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2014 (6) TMI 184 - HC - Income Tax
Validity of revisional order - Status of assessee - Co-operative bank or a primary co-operative credit society – Claim of benefits u/s 80P of the Act - Held that:- The entire discussion of the revisional authority is directed against the application of mind by the AO with reference to the nature of business conducted by the assessee - the AO is required to apply his mind and conduct proper enquiry and also verification at the time of assessment - Lack of this exercise on the part of the AO leads to erroneous order - the reasoning of the revisional authority was not merely based on the name of the assessee but with reference to the factual situation in relation to an enquiry to arrive at a conclusion whether the benefits can be extended or not in the light of section 80P(4) of the Act.
The revisional authority observe that the AO has to reconsider the matter in the light of the observation made in the order of the revision by which it means what exactly should be the nature of enquiry to be conducted by the AO and it does not mean that he has to complete his assessment proceedings after concluding the same similar to the conclusions arrived at by the revisional authority – there was no erroneous observations made by the revisional authority – the AO is directed to pass a fresh assessment order after making necessary enquiries as observed in the order of revisional authority – Decided against the assessee.