TMI Blog2022 (3) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... was reflected in the details of the assessee. The assessee vide letter dated 22.05.2017 submitted the details regarding deduction under Section 80P of the Act which was claimed in the return of income which included in the interest income from Mehsana Urban Co-operative Bank. PCIT has issued the show cause notice under Section 263 on 14.02.2020 on the very same issue which was verified by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the PCIT, Gandhinagar, Ahmedabad for the Assessment Year 2015-16. 2. The grounds of appeal raised by the assessee are as under: (1) On the facts and in the circumstances of the case, the order passed by the learned CIT, Gandhinagar, Ahmedabad u/s. 263 of the I.T. Act is void ab initio being bad in law. (2) On the facts and in the circumstances of the case, the learned CIT erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act on 08.05.2018 as the Assessing Officer has allowed the interest income from Co-operative Banks which was otherwise not allowable in the light of principles enunciated by Hon'ble Karnataka High Court in Totgars Co-operative Sales Society, 83 Taxmann.com 140. It was found that the assessee society earned interest income from Mehsana Urban Co-operative Bank amounting to ₹ 8,05,041/-and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , there should not be any revision of the order as envisaged in Section 263 of the Act. 6. The Ld. DR relied upon the order of the PCIT. 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the entire details called for during the assessment proceedings were submitted by the assessee at the time of assessment under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f State Bank of India vs. CIT (2016) 72 Taxmann.com 64 dated 25.04.2016. On the basis of Hon'ble Karnataka High Court decision in the case of Totgars Co-operative Sales Society (supra), the PCIT cannot invoke provisions of section 263 of the Act. Thus, Section 263 does not sustain and appeal of the assessee is allowed. 8. In the result, appeal of the assessee is allowed. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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