Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 394 - AT - Income TaxRevision u/s 263 - Deduction u/s.80P(2)(a)(i) - HELD THAT:- Adverting to the view taken by the Pr. CIT that the interest income earned by the assessee society on its deposits with scheduled banks would not be eligible for deduction u/s.80P(2)(a)(i) we are unable to persuade ourselves to subscribe to the view so arrived at by the Pr. CIT. In our considered view the issue in hand i.e., as to whether or not interest income on deposits with the scheduled banks would be eligible u/s.80P(2)(a)(i) has been subjected to two schools of thoughts at the relevant point of time when the assessment order was passed by the AO. In so far the interest income arises from short-term deposit of money for which there are no takers at the relevant point of time, the same had been held to be duly eligible for deduction u/s.80P(2)(a) (i). We are of the considered view, that now when the issue in hand is a debatable one and the AO had taken one of the plausible view, therefore, the same could not be held as erroneous in so far it is prejudicial to the interest of the revenue by the Pr. CIT in exercise of his jurisdiction u/s.263 - we are of the considered view that now when the AO had taken one of the plausible view qua the issue in hand i.e. entitlement of the assessee co-operative society for deduction of interest income earned on deposits with scheduled banks u/s. 80P(2)(a)(i) of the Act, therefore, the same could not have been revised by the Pr. CIT u/s.263 - We, thus, in terms of our aforesaid observations set-aside the order passed by the Pr. CIT u/s.263 qua the aforesaid issue in hand. Deduction of delayed deposit of employees share of contribution towards PF u/s.36 (i)(va) - Deduction for payment of employees contribution cannot be disallowed in case the contribution to the employee’s welfare fund was credited on or before the ‘due date’ of filing of return of income by the assessee. Backed by the aforesaid position of law, we are of the considered view that the Pr. CIT had wrongly held that the failure on the part of the AO to add back the delayed deposit of the employees share of contribution towards PF that was disallowable u/s.36(1)(va) of the Act, had rendered his order as erroneous in so far it was prejudicial to the interest of the revenue u/s 263 of the Act. We, thus, in terms of our aforesaid observations not being able to persuade ourselves to subscribe to the view taken by the Pr. CIT qua the aforesaid issue in hand, thus, set-aside the same to the said extent. We not being able to uphold the order passed by the Pr.CIT u/s. 263 as regards either of the aforesaid three issues on the basis of which he had held the assessment order passed by the AO u/s. 143(3), dated 09.02.2016 was erroneous in so far it was prejudicial to the interest of the revenue, thus, set aside the order passed by him u/s.263 and restore the order passed by the AO u/s.143(3).
|