Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 123 - ITAT RAJKOTRevision u/s 263 by CIT - Assessee declared interest income from fixed deposit made with Co-operative Bank which was claimed as exempted under the provision of section 80P(2)(a)(i) - PCIT was of the view that assessee being credit society was eligible for deduction under section 80P(2)(i)(a) of the Act for interest income earned from credit facility provided to its members only whereas the interest income from fixed deposit made with Co-operative bank is not allowable deduction under section 80P(2)(a)(i) - HELD THAT:- As different Hon’ble High Courts have taken different view with respect to the deduction of the interest income earned by the assessee from the co-operative bank. Some of the judgements are in favour of the assessee and some of them are against the assessee. It is also an admitted fact that the Hon’ble High Court of Gujarat is in favour of the assessee with respect to the interest on deposits made with the co-operative bank - See Sabarkantha District Cooperative Milk Producers Union Ltd. [2014 (6) TMI 977 - GUJARAT HIGH COURT] Based on the above, it is transpired that the AO has taken one of the possible view for allowing the deduction to the assessee under the provisions of section 80P(2)(d)/80P(2)(a)(i)(a) of the Act. Where two view are possible on the issue and the AO has taken one of the possible view, however the PCIT does not agree with the view adopted by the AO, in such scenario, the order of the AO cannot be held as erroneous. See Mehsana District Co. Op. Milk Producers Union Ltd. [2003 (4) TMI 77 - GUJARAT HIGH COURT] Thus we find no error in the order of AO so as to justify the initiation of proceedings under section 263 of the Act by the Ld. Pr. CIT. Thus, the revisional order passed by the learned PCIT is not sustainable and therefore we quashed the same - Decided in favour of assessee.
|