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2022 (5) TMI 1055 - AT - Income TaxRevision u/s 263 - deduction u/s 80P (2)(a)/(d) of the Act in respect of interest received from banks disallowed - HELD THAT:- AO had conducted the necessary inquiry and examined the issue of allowability of deduction under Section 80P(2)(a) as well as 80P(2)(d) of the Act. The view taken by the AO is in line with the decision of Kaliandas Udyog Bhavan Premise [2018 (4) TMI 1678 - ITAT MUMBAI] wherein after considering the provisions of Section 80P(4) of the Act it has been held by the Tribunal that a cooperative bank continues to be a co-operative society, and even after introduction of Section 80P(4), a co-operative society is entitled to claim deduction under Section 80P(2)(d) of the Act in respect of the interest received from a cooperative bank. Thus it is clear that the assessment order passed by the AO was neither erroneous nor prejudicial to the interest of revenue. Assuming arguendo even if the contention of PCIT is accepted, the view taken by the AO regarding allowability of deduction under Section 80P(2)(d) of the Act in respect of interest received by the Appellant from a cooperative bank would still qualify as a plausible view and thereby taking away the jurisdiction of PCIT to invoke powers of revision under Section 263 of the Act. It is settled legal position that in case the view taken by the AO is a plausible view, PCIT cannot be permitted to substitute his opinion in place of the AO to arrive to a contrary finding. Thus, we hold that in the facts and circumstances of the present case the PCIT lacked the jurisdiction to exercise powers under Section 263 - Decided in favour of assessee.
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