9911796707
TMI Blog2022 (7) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... 63 of the Income-tax Act, 1961 is arbitrary, unjust and illegal under the facts and circumstances of the appellant case. 2. On the facts and circumstances of the case and on law, the Hon'ble Pr.CIT has assumed the jurisdiction u/s 263 under incorrect application of law as twin condition of "erroneous Order and Prejudicial to interest of revenue" as enunciated u/s 263 were not satisfied simultaneously and therefore assumption of jurisdiction u/s 263 and impugned Order passed thereunder liable to be quashed as void-ab-initio. 3. On the facts and circumstances and law, the original Order passed by the learned AO was after proper application of mind and proper appreciations of law and the intervention caused by the Hon'ble Pr. CIT b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the escapement of income are on probability and further based on pure guess-work which is not permissible u/s 263 and therefore improper assumption jurisdiction on surmises and conjectures is bad in law and further void-ab-initio and Impugned Order thus passed liable to be set-aside in toto. 8. On the facts and circumstances and on law, the Hon'ble Pr.CIT assumed the jurisdiction u/s 263 on an opinion which is different from that of the learned AO which is not permissible on a settled law on subject and therefore improper assumption of jurisdiction u/s263 on a debatable issue and indifferent view discern on issues which is already dealt by AO is bad in law and directions thereof u/s 263 is liable to be annulled. 9. On the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sources without appreciating that such interest is part of business income and therefore the intervention on this subject requires total deletion 13.That the grounds of appeal herein are without prejudice to each other and are independent of each other. 14.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 28/9/2015 declaring a total income of Rs.1,77,980 after claiming deduction u/s 80P(2)(a)(i) of the Income Tax Act (the Act) of Rs.10,63,923/-. The assessment in this case was completed u/s 143(3) of the Act on 19/12/2017 by the ITOWard- 1, Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me from investment which the PCIT held to be earned not from the business of banking or lending credit to the members of the society thereby not being eligible for deduction u/s 80P(2)(a)(i) of the Act as per the ratio laid down by the Karnataka High Court in the case of PCIT vs Totagars Cooperative Sale Society. The PCIT also noticed that the assessee has made a provision of Rs.1,32,013 towards leave encashment and Rs.45,552 which the PCIT proposed to add back to the net profit for the reason that there is no proof for the expenditure having been incurred. The PCIT further noticed that the interest on income tax refund Rs.1,490 was offered by the assessee as Business Income against which the deduction u/s.80(2)(a)(i) was claimed. The PCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scertained liabilities and that the interest on income tax refund to be brought to tax under the head Income from Other Sources. 7. Aggrieved, the assessee is in appeal before us. 8. None appeared for the assessee and we heard the ld DR who supported the order of the PCIT. We notice that the coordinate bench of the Tribunal in the case of Kakkabe VSSN Bank Ltd., in ITA No.490/Bang/2021 dated 28.02.2022 has dealt with the similar issue, where the Hon'ble Tribunal has remanded the issue back to the file of the AO for de novo assessment with certain directions and held that "6. We note that though prima facie, the issues needs to be revisited by the Ld.AO, however, the directions of the Ld.Pr.CIT to make addition in respect of the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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