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2023 (8) TMI 1183 - AT - Income TaxRevision u/s 263 - Scope and powers of applicability of Section 263 - Deduction u/s 80P(2) - HELD THAT:- As the order passed by AO is not erroneous and prejudicial to the interests of the Revenue for the reason that firstly, AO had examined this issue during the course of assessment proceedings and secondly, various judicial precedents as highlighted above have also adjudicated on this issue in favour of the assessee including the jurisdictional Gujarat High Court in STATE BANK OF INDIA (SBI) [2016 (7) TMI 516 - GUJARAT HIGH COURT] and M/S. SURENDRANAGAR DISTRICT CO-OP. MILK PRODUCERS UNION LTD.[2019 (9) TMI 978 - ITAT RAJKOT] as held that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of deduction u/s 80P(2)(d). We also need to be mindful of the fact that in 263 proceedings, the scope of proceedings is not as vast as in the case of original assessment proceedings and would the assessment order can be set-aside only within the framework provided u/s 263 of the Act. Hon’ble Supreme Court in the case of Shreeji Prints (P.) Ltd. [2021 (9) TMI 108 - SUPREME COURT] outlining the scope and powers of applicability of Section 263 we are of the considered view that Ld. PCIT erred in facts and in law in setting-aside the assessment order as being erroneous and prejudicial to the interest of the Revenue in the instant case. Decided in favour of assessee.
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