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2023 (8) TMI 85 - AT - Income TaxRevision u/s 263 - deduction u/s 80P - claim made by the appellant against the interest income received from deposit with Delhi Cooperative Bank and also exemption against agricultural income and other income - HELD THAT:- PCIT has not disputed the fact that the appellant is group housing society having status of AOP and was incorporated under the Multi-State Cooperative Act, 2002 on 27.02.2009 with the object to construct residential flats for its members. The assessee collected money from its members and deposited the same in Delhi State Cooperative Bank, New Delhi and HDFC Bank. The appellant society earned interest income from surplus of deposit lying with the said banks and interest earned was to be utilized for meeting the sole object of the assessee i.e. to construct the residential flat. These facts have not been controverted or disputed by the ld PCIT in any manner. Therefore, the assessee is a housing cooperative society and not cooperative bank. In the case of PCIT Vs. Totagars Co-operative Sale Society [2017 (1) TMI 1100 - KARNATAKA HIGH COURT] held that for the purpose of section 80P(2)(d) a co-operative bank should be considered by a cooperative society and interest earned by cooperative society from cooperative bank would necessarily be deductible u/s 80P(1) of the Act. AO was right in allowing claim of assessee u/s 80P(2)(d) and therefore, the assessment order cannot be alleged as erroneous and prejudicial to the interest of revenue on merits. PCIT was not correct and justified in invoking revisionary provision of section 263 of the Act at the issue of allowance of exemption u/s 80P(2)(d) to the assessee on the interest earned from Delhi State Cooperative Bank. Decided in favour of assessee.
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