TMI Blog2022 (7) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... d, on appeal by the assessee, the Coordinate Bench of this Tribunal [ 2022 (3) TMI 71 - ITAT AHMEDABAD] set aside the order passed by the learned PCIT under Section 263 of the Act restoring that of the Assessing Officer by relying inter alia on the decision of the Hon ble jurisdictional High Court in the case of State Bank of India [ 2016 (7) TMI 516 - GUJARAT HIGH COURT] The issue involved in the present case is thus squarely covered by the decisions rendered by the Tribunal in the case of the People Co-op. Credit Society Ltd. ( 2022 (3) TMI 71 - ITAT AHMEDABAD] and Sardar Patel Co-op. Credit Society Ltd ( 2022 (6) TMI 843 - ITAT AHMEDABAD] wherein a similar issue involving identical facts and circumstances has been decided by the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interest on refund received under Section 244A of the Act. Thereafter, on receipt of a proposal dated 23.06.2016 received from the Assessing Officer for revision of the said assessment order, the relevant records were examined by the learned PCIT. On such examination, he found that interest income of Rs.13,55,023/- received by the assessee on savings account and other deposits with Mehsana Dist. Co. Op. Bank Ltd. as well as with Dena Gujarat Gramin Bank was wrongly allowed by the Assessing Officer as deduction under Section 80P(2) of the Act which was contrary to the principles enunciated by the Hon ble Karnataka High Court in the case of PCIT Vs. Totgars Co-operative Sale Society, [2017] 83 Taxmann.com 140 (Karnataka). According to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of Hon ble Karnataka High Court in the case of Totgars Co-operative Sale Society (supra) and after granting proper opportunity of being heard to the assessee. Aggrieved by the order of the learned PCIT passed under Section 263 of the Act, the assessee has preferred this appeal before the Tribunal. 3. At the time of hearing fixed in this case on 30.06.2022, none has appeared on behalf of the assessee. However, it is observed that the assessment completed by the Assessing Officer under Section 143(3) of the Act allowing the similar claim of an assessee for deduction under Section 80P(2) of the Act in respect of interest income earned on the deposits with Mehsana Urban Co-operative Bank was set aside by the same learned PCIT vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was verified by the Assessing Officer in Section 143(3) proceedings itself. Once the issue verified by the Assessing Officer and the jurisdictional Court has allowed the said claim related to interest income earned from Co-operative Bank, the PCIT cannot exercise Section 263 of the Act. The ld. A.R. aptly relied upon the decision of 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. The aforesaid decision of Co-ordinate Bench of this Tribunal in the case of the People Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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