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2020 (9) TMI 1013 - AT - Income TaxRevision u/s 263 - treating the original assessment made u/s. 143(3) as erroneous and prejudicial to the interest of revenue - assessee not eligible for deduction u/s. 80P2(d) - assessee has made certain investment in various banks and earned interest income on fixed deposit and dividend income and has not offered the said amount for taxation under the head “Income from other sources” and he held interest and dividend income earned is other income not eligible for deduction u/s. 80P2(d) - As per assessee every detail regarding the claim under Chapter VI has been provided to the AO and after examination of which the AO allowed the claim of assessee - HELD THAT:- Record furnished before us regarding the assessment proceedings clearly shows the assessee made no specific claim u/s. 80P2(d) of the Act before the AO nor in the return of income as rightly pointed by the ld. DR. Whether the interest and dividend earned by the assessee from Co-operative Bank is eligible for claim u/s. 80P2(d) ? - In the present case, the assessee is a Co-operative Society engaged in the business of manufacturing of sugar and by-products. As rightly argued by Shri Deepak Garg that the assessee is not under the activities of specified under Clause (d) or (b) of section 80P, but under Clause (c), as discussed above the assessee earned interest and dividend income from Latur District Central Co-operative Bank and Vikas Sahakari Bank Ltd. clearly shows the interest and dividend earned by the assessee are not from Co-operative Society. Therefore, in our opinion the AO on incorrect assumptions of facts without applying correct application of law allowed deduction u/s. 80P2(d) of the Act which clearly reflects non application of mind. Coming to the assessment order passed 143(3) of the Act, we note that there was no discussion nor reference made by the AO to the claim of assessee made u/s. 80P2(d) - AO has not made proper enquiry of the claim made by the assessee in terms of provisions contemplated u/s. 80P - Pr. CIT directed the AO to decide this issue afresh after bringing entire facts on record after affording opportunities to the assessee, in our opinion, the order of Pr. CIT-2 is valid in treating the assessment order completed u/s. 143(3) of the Act dated 08-03-2016 as erroneous and prejudicial to the interest of revenue. - Decided against assessee.
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