TMI Blog2014 (3) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment or cancelling the assessment and directing a fresh assessment. As decided in Malabar Industrial Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME Court] - the provision “cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer” and “it is only when an order is erroneous that the section will be attracted” - an incorrect assumption of fact or an incorrect application of law, will satisfy the requirement of the order being erroneous - An order passed in violation of the principles of natural justice or without application of mind, would be an order falling in that category - the assessing officer has given a categorical finding that the assessee is not a cooperative bank – thus, in that case t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e bank. In this regard, it placed reliance on the following case law:- (a) ITO Vs. Jankalyan Nagri Sahakari Pat Sanstha Ltd (2012)(24 Taxmann.com 127 (Pune) (b) M/s Yeshwantpur Credit Co-operative Society Ltd Vs. ITO (ITA No.737/Bang/2011 dated 11.4.2012) However, the Ld CIT was not satisfied with the contentions of the assessee and accordingly took the view that the assessment order has been rendered erroneous and prejudicial to the interests of the revenue, since the AO has failed to examine the applicability of sec. 80P(4) of the Act to the assessee. Accordingly, the Ld CIT directed the AO to examine the issue of deduction u/s 80P of the Act. Aggrieved, the assessee has filed this appeal before us. 3. The Ld Counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural credit society or a primary cooperative agricultural and rural development bank A plain reading of the above cited provision would show that the deduction u/s 80P is not available to a Co-operative bank. We notice that the Ld CIT has taken the view that the assessee may be hit by the provisions of sec. 80P(4) and according to Ld CIT, the AO has failed to examine about its applicability to the assessee herein. 6. Before going into the merits of the issue, we would like to discuss about the legal position with regard to the power of Learned CIT to invoke revision proceedings under section 263 of the Act. The scope of revision proceedings initiated under section 263 of the Act was considered by jurisdictional Hon'ble Bombay Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be an order falling in that category. The expression prejudicial to the interests of the Revenue , the Supreme Court held, it is of wide import and is not confined to a loss of tax. What is prejudicial to the interest of the Revenue is explained in the judgment of the Supreme Court (head note): The phrase prejudicial to the interests of the Revenue has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the Assessing Officer, cannot be treated as prejudicial to the interests of the Revenue, for example, when an Income-tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue, or where two views are possibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions in the case of Jankalyan Nagri Sahakari Pat Sanstha Ltd (supra) and in the case of M/s Yeshwantpur Credit Co-operative Society Ltd (supra). Thus, we notice that the assessing officer has taken one of the possible views on the issue relating to the applicability of sec. 80P(4) by holding that the assessee is not a co-operative bank. The Hon ble Supreme Court in the case of Malabar Industrial Co. Ltd (supra) has categorically held that, where two views are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue unless the view taken by the Income-tax Officer is unsustainable in law. It is not the case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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