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2015 (10) TMI 395 - AT - Income TaxRevision u/s 263 - As per the CIT, AO had failed to examine the claim for deduction u/s.80P(2)(a)(i) - Held that:- In so far as construing the meaning of the words carrying on the business of banking by providing credit facilities to its members, is concerned, judgment of jurisdictional High Court in the case of Grain Merchants Cooperative Society [2003 (10) TMI 21 - KARNATAKA High Court] will apply on all four squares. If that be so, assessee has a good case that its property income could only be construed as profits and gains attributable to the business of banking. If that be so such amounts would also be eligible for claim of deduction u/s.80P(2)(a)(i) of the Act. The CIT had directed the AO to make the disallowances without giving him any room for taking the submissions and pleading of the assessee into consideration which in our opinion was not proper. At the same time it is also true that AO had made no enquiries on these vital issues at the time of assessment. Hence we are of the opinion that Ld. CIT (A) was justified in considering the assessment order as erroneous and prejudicial to the interests of Revenue. However in the circumstances of the case, direction of the CIT to assess the incomes mentioned at para four above is not correct. Therefore, while upholding the order of CIT u/s.263 of the Act, we modify it and direct the AO to do the assessment afresh in accordance with law, untrammelled by the observation of the CIT on merits regard. - Decided partly in favour of assessee for statistical purpose.
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