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2022 (9) TMI 341 - AT - Income TaxRevision u/s 263 by CIT - Eligibility of deduction u/s 80P on interest income - appellant society earned interest income on investments made with cooperative banks - PCIT was of the opinion that the cooperative bank does not fall under the purview of a “cooperative society” and therefore the interest income earned from such cooperative bank does not qualify for deduction u/s 80P(2)(d) - HELD THAT:- The error in the assessment order should be one that it is not debatable or plausible view. In a case where the AO examined the claim took one of the plausible views, the assessment order cannot be termed as an “erroneous”. In the present case, we find that admittedly the interest income was earned from the cooperative banks, the cooperative bank is also a specie of cooperative society, therefore, the interest income earned by the cooperative society from the cooperative banks qualifies for deduction u/s 80(P)(2)(d) of the Act. Such interest also qualifies for exemption u/s 80P(2)(a)(i) as held by the Co-ordinate Bench of Pune Tribunal in the case of Nashik Road Nagari Sahkari Patsanstha Limited [2021 (12) TMI 1259 - ITAT PUNE]. Similarly, as regards to the disallowance of provision for expenses, without going into the merits of the disallowance sought to be made by the ld. PCIT, it would suffice to say that disallowance, if any, shall increase the business profits of the appellant cooperative society. The business profits so inflated shall qualify for exemption u/s 80(2)(a)(i) of the Act. Therefore, even assuming for a moment that the provisions for exemption warrant addition, it does not result into an enhancement of assessed income warranting a revision.Issues which are subject matter of revision, are either covered in favour of the assessee by judicial precedents nor results into any enhancement of assessed income warranting a revision. Thus we are of the considered opinion that the order of revision passed by the ld. PCIT u/s 263 of the Act cannot be sustained in the eyes of law. Hence, the grounds of appeal raised by the assessee stand allowed.
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