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2022 (12) TMI 869 - AT - Income TaxRevision u/s 263 by CIT - deduction of interest income has been claimed u/s. 80(P)(2)(d) - As per CIT cooperative bank is not cooperative society for claiming of deduction u/s 80P(2)(d) - interest on FDR received from Sikar Kendriya Sahakari Bank Limited has been claimed and the same was allowed by the AO, which is not allowable u/s.80(P)(2)(d) and PCIT found that it is factually apparent that the AO has not verified the issue while completing the assessment - HELD THAT:- As the A.O while framing the assessment had taken a possible view, and revenue did not demonstrate the error remain on the part of the ld. AO. In fact, when the ld. AO has conducted the required enquiry and not violated any of the conditions mentioned for revision of order as required by Explanation 2of Section 263 order passed by the AO could not be deemed to be erroneous so as to be prejudicial to the interests of the revenue. As long as the action of the AO cannot be said to be lacking bonafides, his action in accepting an explanation of the assessee cannot be faulted merely because it could have been lawful to make mere detailed inquiries or because he did not write specific reasons of accepting the explanation. As for learned PCIT's observations regarding accepting the explanation "without appropriate evidence", there is nothing to question the bonfides of the Assessing Officer or to elaborate as to what should have been 'appropriate' evidence. The fact remains that the specific issue raised, in the revision order was specifically looked into, detailed submissions were made and these submissions were duly accepted by the Assessing Officer. Merely because the AO did not write specific reasons for accepting the explanation of the assessee cannot be reason enough to invoke powers under section 263, and non-mentioning of these reasons do not render the assessment order "erroneous and prejudicial to the interest of the revenue". Appeal of the assessee is allowed.
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