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2023 (4) TMI 37 - AT - Income TaxRevision u/s 263 - PCIT observed that AO had allowed the claim made by the appellant society u/s 80P without verification of the claim - appellant society had earned interest income and dividend income on deposits made out of the surplus with other co-operative society or co-operative banks - PCIT was of the opinion that the said income is liable to tax under head “Income from other sources” under the provisions of section 68 and does not qualify for deduction u/s 80P - Whether the issue of eligibility of interest income earned on investments made with other co-operative banks qualifies for exemption u/s 80P(2)(a)(i) or section 80P(2)(d)? - HELD THAT:- The interest income earned by the co-operative society from investments made out of the surplus fund with other co-operative banks qualifies for deduction u/s 80P(2)(a)(i) or section 80P(2)(d) is not free from the debate, as the very fact there is cleavage of judicial opinion amongst various High Courts clearly establishes that the existence of debate cannot be ruled out. Thus, it is a purely legal debateable issue, which is not amenable to jurisdiction u/s 263 of the Act in view of the discussion made by us supra. Therefore, we are of the considered opinion that the ld. PCIT was not justified in exercising the power of revision u/s 263 in the facts of the present case. Accordingly, the appeal filed by the assessee stands allowed.
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