Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 222 - AT - Income TaxRevision u/s 263 - as per CIT Section 80P deduction has not been correctly granted by the AO - HELD THAT:- In Hon’ble High Court in CIT vs. Baroda Peoples Co-operative Bank [2005 (7) TMI 33 - GUJARAT HIGH COURT] we find merit in the submission of the ld. A.R that the Ld PCIT has erred in relying on the decision of Hon’ble Supreme Court in Totgar’s Co-operative Sales Society Ltd.[2010 (2) TMI 3 - SUPREME COURT] since it was in respect of society providing credit facilities to its members and not an assessee which is a bank. In the light of judicial precedence laid down by the Hon’ble Apex Court in Malabar Industries Ltd. [2000 (2) TMI 10 - SUPREME COURT] wherein their Lordship have held that twin conditions needs to be satisfied before exercising revisional jurisdiction u/s 263 by the CIT. In this case, we note that the view of Assessing Officer cannot be held to be erroneous, since Section 80P deduction has been correctly granted by the AO in consonance with the ratio of the decision of Hon’ble Gujrat High Court in CIT vs. Baroda Peoples Co-operative Bank Ltd. (supra), so the view of AO is a plausible view and therefore Ld. PCIT erred in invoking the revisional jurisdiction u/s 263 without satisfying the condition precedent essential to invoke revisional jurisdiction. PCIT ought not to have invoked the power u/s 263 and therefore, the invoking of the revisional jurisdiction itself is held to be bad in law and therefore quashed. - Appeal of the assessee is allowed.
|