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2021 (4) TMI 800 - AT - Income TaxRevision u/s 263 - deduction claimed un/s 80P(2)(d) not available and that deduction so allowed in the assessment by assessing officer is erroneous and prejudicial to the interest of revenue - HELD THAT:- As noted that during the assessment the Assessing Officer vide notice under section 143(2) of the Act dated 19.09.2016 required details regarding the deduction claimed Chapter VIA including justification and supporting documents thereof. The assessee vide its reply dated 23.02.2017 furnished complete details regarding deduction under Chapter VIA, consisting deduction under section 80(2)(c) of ₹ 50,000/- and deduction under section 80P(2)(d) with justification. AO again vide notice dated 25.04.2017 issued under section 142(1) further required the details regarding deduction under section Chapter VIA, the assessee furnished the details of interest income on Fixed Deposits with Co-operative Banks. Assessing Officer passed assessment order on 28.06.2017, admittedly, there is no reference about the contents of the reply furnished by assessee, however, in para 1 of the assessment order the reference of both the notices is clearly referred. The ld. PCIT before passing under section 263 of the Act, identified the issue regarding the claim of deduction under section 80P(2)(d). The assessee in its reply dated 15.02.2020 clearly explained that the issue was examined by Assessing Officer and that the assessment order is not erroneous. Thus keeping in view of the decision Hon'ble Jurisdictional High Court in Surat Vankar Sahakari Sangh Ltd., [2016 (7) TMI 1217 - GUJARAT HIGH COURT] wherein the assessee-co-operative society is held eligible for deduction under section 80P(2)(d) in respect of gross interest received from co-operative bank without adjusting interest paid to said bank, we conclude that the order passed by assessing officer is not erroneous. Hence, the grounds of appeal raised by assessee are allowed.
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