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2021 (8) TMI 152 - AT - Income TaxRevision u/s 263 - Deduction u/s 80P - assessee had received interest income on bank deposits and other income during the relevant assessment year and this income was not offered by the assessee for taxation - HELD THAT:- We notice that assessee made the investment in various banks including Co-operative Bank and earned the interest income and other income.We notice that assessee had claimed income u/s 80P(2)(a) of the Act and constantly AO was allowing the deductions in the previous assessment years from 2011-12 to this assessment year. As brought to our notice the respective decisions of Guttigedarara Credit Co-operative Society Ltd 2015 (7) TMI 874 - KARNATAKA HIGH COURT] allowed the claim of the assessee on interest earned by them on the investments made in banks as deductible u/s 80P and these decisions were passed on 28.10.2014 and 09.06.2015. The issue of claiming interest on bank deposits by Co-operative Societies are already settled in favour of the assessee, now the Ld. Pr. CIT raising such settled issued u/s 263 in this assessment year with the findings that AO has not made inquiries in these transactions. In our view revisiting the settled issue and this issue was considered by the AO and passed the relevant assessment order by relying based on the submissions of the assessee that this interest was allowed in the previous assessment years and covered by the Hon’ble High Court order which cannot be considered as erroneous in so far as it is prejudicial to the interest of the revenue. Therefore, revisions u/s 263 in the case of the assessee is bad legal precedent. Accordingly, grounds raised by the assessee in this regard are allowed.
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