9911796707
TMI Blog2020 (10) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... members. For AY 2014-15, the assessee filed return of income on 30.9.2015 declaring total income at Nil, after claiming deduction of Rs. 10,83,853 u/s.80P(2)(a)(i) of the Act. The assessment was completed accepting the claim of assessee for deduction u/s. 80P(2)(a)(i) in an order passed u/s. 143(3) of the Act date 9.12.2016. 3. The Pr.CIT in exercise of his powers u/s. 263 of the Act was of the view that the assessment order of the AO allowing deduction u/s. 80P(2)(a)(i) to the assessee was erroneous and prejudicial to the interests of the revenue for the reason that while allowing deduction, the AO followed the decision of Hon'ble High Court of Karnataka in the case of Sri Biluru Gurubasava Sahakari Sangha Niyamitha, 369 ITR 86 (Karn) ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative Society Ltd. (supra) will not apply to the case of assessee and therefore the order of AO cannot be treated as erroneous and prejudicial to the interests of the revenue. The assessee also explained that the facts and circumstances in the case before the Supreme Court in the case of Citizen Co-operative Society Ltd. (supra) and as to how the facts of the assessee's case stand on a different footing. The assessee thus submitted that the proceedings u/s. 263 of the Act were misconceived and should be dropped. 5. The Pr. CIT, however, in the impugned order has mentioned that in the course of proceedings u/s. 263 of the Act, the assessee was asked to produce all financial transactions of the assessee's society with all the persons carrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s prejudicial to the interest of revenue on account of facts found during the 263 proceedings. I therefore set aside the assessment order to be redone afresh after giving an opportunity to the assessee, in the light of the observations in para 3 above." 6. Aggrieved, the assessee has preferred the present appeal before the Tribunal. 7. We have heard the rival submissions. It is seen from the reply filed by the assessee to the show cause notice u/s. 263 of the Act that the assessee had given complete details of members and deposits and those details are available in pages 58 to 66 of assessee's PB. The bye laws of assessee's society have also been given and the same are at pages 70 to 118 of assessee's PB. In a reply dated 29.3.2019, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act in the light of the decision of Hon'ble Supreme Court in Citizen Co-operative Society Ltd. (supra), the exercise to be done would be restricted to verification of nature of membership of the society as per the bye laws and as to whether the income derived by the assessee on which deduction u/s. 80P(2)(a)(i) has been claimed, is attributable to the business of providing credit facilities to its members. 9. We are, therefore, of the view that the order u/s 263 of the Act should be upheld because of the subsequent decision of the Hon'ble Supreme Court in the case of Citizen Co-operative Society Ltd. (supra), but at the same time, the directions contained in para 3.3 of the impugned order should not weigh in the mind of the AO while co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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