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2022 (10) TMI 223 - AT - Income TaxRevision u/s 263 by CIT - Deduction u/s 80P - Allowability of deduction towards interest income received from Co-operative banks claimed u/s 80P(2)(a)(i) of the Act - HELD THAT:- It is pertinent to note that ld. AO adjudicated the issue of claim made by the assessee u/s 80P by passing a detailed order and more importantly making an addition in this respect of Rs. 1,95,605/- towards net income received by the assessee from HDCCB. Therefore, present case cannot be termed as a case of lack of enquiry by the ld. AO as alleged by the ld. PCIT. As dealt with Explanation 2 as inserted by the Finance Act, 2015 in the case of Narayan Tatu RaneI [2016 (5) TMI 1162 - ITAT MUMBAI] to hold that the said Explanation cannot be said to have overridden the law as interpreted by the Hon'ble Delhi High Court, according to which the ld. PCIT has to conduct an enquiry and verification to establish and show that the assessment order is unsustainable in law - intention of the legislature could not have been to enable the ld. PCIT to find fault with each and every assessment order, without conducting any enquiry or verification in order to establish that the assessment order is not sustainable in law, since such an interpretation will lead to unending litigation and there would not be any point of finality in the legal proceedings. The opinion of the ld. PCIT referred to in section 263 of the Act has to be understood as legal and judicious opinion and not arbitrary opinion. AO after undertaking requisite enquiries, had taken one of the plausible views on the claim of the assessee u/s 80P of the Act and has made the disallowance in this respect while completing the assessment for which assessee did not go into appeal. Accordingly, the impugned revision order passed by ld. PCIT u/s 263 holding the assessment order as erroneous in so far as it is prejudicial to the interest of revenue is not sustainable and is therefore, quashed. Thus, the grounds of appeal by the assessee are allowed.
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