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2021 (8) TMI 1087 - AT - Income TaxRevision u/s 263 - irregularities computing deduction claimed u/s 80P(2) - whether interest on savings bank account and interest from fixed deposits are eligible for deduction under section 80P(2)(d) of the Act or not, specially where the assessee has submitted the details of interest on savings bank account and interest on fixed deposit before the AO - HELD THAT:- Assessee has shown income from other sources comprising interest income from savings bank account, fixed deposits, sale proceeds of old newspapers. The AO has examined these issues in respect of interest and interest on fixed deposits, and took a possible view, therefore, order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue. Assessee has submitted the details of interest income from savings bank account and interest income from fixed deposits before the AO which is evident from page no.2 of the order of the Assessing Officer passed by him under section 143(3) of the Act, dated 18.10.2016. Just because, the assessee has, by mistake and inadvertently, mentioned the interest on saving bank and interest on fixed deposits under the head “Income from other sources” , does not mean that assessee would not be eligible to claim deduction under section 80P(2)(d) of the Act. Right income should be taxable in the hands of the assessee in the right assessment year. Income returned under an erroneous understanding or misconception of law is not chargeable under the Act [Abdul v CIT [1989 (12) TMI 37 - ALLAHABAD HIGH COURT]]. During the assessment proceedings, the AO has issued notice under section 142(1) of the Act, dated 8th September, 2016, wherein the AO asked the assessee to furnish the details, documents and explanations about the deduction claimed under chapter VIA - Therefore, the AO having examined the submissions and documents filed by the assessee, passed the order under section 143(3) of the Act dated 18.10.2016. We also note that assessment order passed by the assessing officer is sustainable in law, as the Coordinate Bench of ITAT Mumbai in the case of Lands and Co-Operative Housing Society Ltd. [2016 (2) TMI 620 - ITAT MUMBAI] has held that interest earned by Co-Operative Housing Society on Investment with a Co-Operative Bank is eligible for deduction U/s 80P(2)(d) - An order of assessment passed by the Assessing Officer should not be interfered with only because another view is possible, as held by Hon`ble Supreme Court in the case of CIT vs. Green World Corporation [2009 (5) TMI 14 - SUPREME COURT] - Hence, such order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue. Therefore, we quash the revision proceedings initiated by the learned PCIT under section 263 - Decided in favour of assessee.
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