TMI Blog2022 (7) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... and on facts in exercising his section 263 revision jurisdiction in the given facts and circumstances of this case. His order under challenge is reversed accordingly as not sustainable in law. - Decided in favour of assessee. - ITA No.1245/PUN/2018 - - - Dated:- 14-7-2022 - Shri S.S. Godara, Judicial Member And Dr. Dipak P. Ripote, Accountant Member For the Assessee : Shri Abhay Avachat For the Revenue : Shri Rajarshi Dwivedy ORDER PER S.S. GODARA, JM : This assessee s appeal for AY 2014-15 arises against the Pr.CIT-1, Nashik s order dated 11-06-2018 involving proceedings under Section 263 of the Income Tax Act, 1961, in short the Act . Heard both the parties. Case file perused. 2. It emerges at the outs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 263, the error of law may not be apparent on the face of the order. The Commissioner may consider an order of the Assessing Officer to be erroneous not only if it contains some apparent error of reasoning or of law or of fact .on .the face of it but a'so because it is a. stereo-typed order which simply accepts what the assessee has stated in his return and fails to make enquiries which are called for in the circumstances of the case[for illustrations on the point, see Rampyari Devi Saraogi v. CIT, (1968) 67 ITR 849(SC) and Tara Devi Aggarwal v. CIT (1973) 88 ITR 323(SC)]. It is not necessary for the Commissioner to make further enquiries before cancelling the assessment orders of the Assessing Officer. The Commissioner can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Maharashtra Cooperative Societies Act,1960 with the objective of accepting deposits and lending money to its members. The money which is not immediately required for the purpose of lending to the members is deposited with Bank of Baroda in the form of Fixed Deposit. The question is whether the interest so earned qualifies for exemption u/s. 80P(2)(a)(i) of the Act. The AO as well as the CIT(A) were of the opinion that the interest earned from third parties or non-members does not quality for exemption u/s.80P. It is an admitted position that the interest so earned should be taxed as income from other sources There is a cleavage of judicial opinion among several High Courts on the issue of eligibility of this kind of income for exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken view in favour of the assessee following the judgment of Hon ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). Respectfully following the decision of the Coordinate Bench, we hold that the interest income earned on the investment of surplus money with banks is also eligible for exemption u/s.80P(2)(a)(i) of the Act. Thus, the grounds of appeal No. 1 2 stands allowed. 4. We accordingly hold that the learned PCIT has erred in law and on facts in exercising his section 263 revision jurisdiction in the given facts and circumstances of this case. His order under challenge is reversed accordingly as not sustainable in law. 5. This assessee s appeal is allowed in above terms. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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