TMI Blog2022 (5) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... heard to the assessee . The assessee is directed to file the required documents before the AO and extend full cooperation to the AO. Appeal by the assessee is allowed for statistical purpose. - ITA No.491/Bang/2021 - - - Dated:- 6-5-2022 - Shri N.V Vasudevan, Vice President And Ms. Padmavathy S, Accountant Member For the Assessee : Shri Narendra Sharma, Advocate For the Revenue : Mrs. Susan D George, CIT(DR) ORDER PER PADMAVATHY S, ACCOUNTANT MEMBER This appeal is against the order of the Pr. Commissioner of Income Tax, Mysore passed u/s 263 of the Income-tax Act (the Act) dated 6/3/2020 for the assessment year 2015-16. 2. The assessee raised following grounds:- 1. The Impugned Order as passed by the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not part of CASS Limited scrutiny mandate resulting-in violating the CBDT guidelines/instructions and therefore assumption of improper jurisdiction u/s 263 by breaching CBDT Instructions and impugned Order thus passed thereof is bad in law and liable to be annulled. 6. On the facts and circumstances and on law, the Order passed by the learned AO as on 19.12.2017 u/s 143(3) was neither erroneous nor prejudicial to the interest on revenue and therefore the intervention by the Hon'ble Pr.CIT by invoking provisions of the Section 263 is without proper jurisdiction and impugned Order thus passed u/s 263 is void-abinitio liable to be annulled. 7. On the facts and circumstances and on Law, the Hon'ble Pr.CIT assumed the juri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit fee is an ascertained Liability and not contingent in nature and therefore direction passed under assumptions and presumption on this count is liable for total deletion. 11.That the grounds of appeal herein are without prejudice to each other and are independent of each other. 12.The appellant craves leave to amend, alter, modify, substitute, and to, abridge and/or rescind any or all of the above grounds. 3. The brief facts of the case are that the assessee filed the return of income for the assessment year 2015-16 on 15/9/2015 declaring a total income of Rs.Nil after claiming deduction u/s 80P(2)(a)(i) of Rs.33,97,206/-. The assessment in this case was completed u/s 143(3) of the Act on 19/12/2017 by the ITO-Ward-1, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the show cause notice, the assessee filed a reply stating that the investments were made in the District Cooperative Bank which is eligible for deduction u/s 80P(2)(d) of the Act. In this regard, the assessee placed reliance on the decision of the Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Society Ltd., Vs. ITO in ITA No.307/2014 dated 28.10.2014, wherein Hon ble High Court held that the interest accrued from the deposits made by the assessee in a nationalized bank out of the amounts which was used by the assessee for providing credit facilities to its members and therefore interest earned there from is eligible for deduction u/s 80P(2). The PCIT did not agree with contention of the assessee and conclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) considered the issue relating to interest income earned and has distinguished the decisions of Hon ble Karnataka High Court in case of Tumkur Merchants Souharda Credit Co-operative Society Ltd. vs. ITO (supra). In view of the above, we modify the directions of Ld.Pr.CIT by directing the Ld.AO to carry out de novo verification on the issues considered by the Ld.Pr.CIT in the impugned order having regard to the principle laid down by Hon ble Supreme Court in case of Mavilayi Service Cooperative Bank Ltd. Vs.CIT (supra). The assessee is directed to file all requisite details in support of the claim which would be verified by the Ld.AO in accordance with law. Needless to say that proper opportunity of being heard to be granted to assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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