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2023 (1) TMI 783 - HC - Income TaxRevision u/s 263 - claim of deduction u/s 80P - Tribunal quashing the order passed u/s 263 - HELD THAT:-Tribunal took note of the decision of the high Court of Karnataka in the case of GUTTI GEDERARA COOPERATIVE SOCIETY LTD [2015 (7) TMI 874 - KARNATAKA HIGH COURT] and held that when the amount which is deposited in the bank was not an amount due to members and it was not the liability of the society to the members then the interest earned from the deposits in the bank was held to be eligible for deduction under Section 80P (2)(a)(i) of the Act. Tribunal has also extensively gone into the manner in which the assessing officer completed the assessment by conducting inquiry after issuing a questionnaire on the deduction claimed by the assessee under Section 80P(2)(a)(i) and also taking note of the detailed report filed by the assessee. Tribunal noted that the documents placed by the assessee before it clearly demonstrates the nature of activity carried on by the assessee resulting in different business income which is covered by the Tribunal of 80P(2)(a)(i). In this regard reliance was placed on High Court of Bombay in the case of GABRIEL INDIA LTD [1993 (4) TMI 55 - BOMBAY HIGH COURT] Further as to the justification on the part of the PCIT to invoke its power under Section 263 Tribunal took guidance from the decision of the High Court at Delhi in the case of ITO Vs.DG HOUSING PROJECTS LTD. [2012 (3) TMI 227 - DELHI HIGH COURT] wherein it was held that in the case wrong opinion for finding on merit, the CIT has to come to the conclusion himself decided that the order is erroneous by conducting necessary inquiry. Further, it was pointed out that CIT while exercising jurisdiction under Section 263 of the Act should record a finding that the assessment order is erroneous and prejudicial to the interest of revenue and it is not sufficient to allege that the investigation was inadequate. On facts, the learned Tribunal formed that the PCIT has not carried out any enquiry of his own and merely set aside the assessment and remanded it to the Assessing Officer to pass a fresh assessment order on the issue of claim of deduction under Section 80B(2)(a)(i) of the Act and this being contrary to the decision rendered in the case of DG Housing Projects Limited, allowed the appeal and quashed the order passed under Section 263 of the Act. Thus, we find that the learned Tribunal had rightly taken note of the legal position and granted relief to the assessee. Hence, we are of the view that there is no error in the order passed by the Tribunal for us to interfere and much less, there is no substantial question of law arising for consideration.
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