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2022 (1) TMI 1090 - AT - Income TaxRevision u/s 263 by CIT - interest earned on short term deposit not immediately required in the business of assessee is assessable under the head “income from other sources” and no deduction under section 80P(2)(a)(i) - HELD THAT:- During the hearing of submission, assessee fairly conceded that the interest earned on such deposit with DGVCL may not be eligible for deduction under section 80P(2)(d) of the Act. Therefore, the order of ld PCIT is upheld to that extent. Other interest earned on deposit with Surat District Co-operative bank we find that deduction claimed qua this interest income is eligible for deduction under section 80P(2)(d) of the Act in view of the decision of this Bench in Bardoli Vibhag Gram Vikas Co.Op. Credit Society Ltd. [2021 (5) TMI 446 - ITAT SURAT] We find that the assessment order qua the deduction under section 80(9)(2)(d) of the Act on account of interest earned from Surat Co-operative bank is not erroneous. Since the order is not erroneous, though, it may be prejudicial to the interest of the Revenue. Thus, the twin condition as provided in section 263 of the act is not fulfilled qua the income component of interest income earned on deposit with Surat Cooperative Bank; therefore, the order passed by the ld PCIT is set-aside to that extent. In the result, the grounds of appeal raised by the assessee are partly allowed on the primary submissions of the ld AR for the assessee. Appeal of the assessee is partly allowed.
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