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TMI Blog2022 (9) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... and on facts in invoking jurisdiction u/s 263 and setting aside the Assessment Order, directing the AO to pass fresh order after verification when the ld AO had applied his mind after sufficient inquiries and examined the issue in the original assessment proceedings in respect of interest income and granted deduction u/s 80P. 2. The ld CIT erred in law and on facts in not appreciating that the decision of Supreme Court in case of Totgars Cooperative Sales Society Ltd is inapplicable to the appellant in respect of interest income and therefore deduction u/s 80P could not be denied. 3. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing." 3. Briefly, the facts of the case are as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordance with law after granting an opportunity of being heard to the appellant society. 5. Being aggrieved by the above order of revision, the appellant is in appeal before us in the present appeal. 6. It is submitted that the ld. PCIT had grossly fell in error by treating the assessment order as erroneous and prejudicial to the interests of the Revenue, inasmuch as, during the course of assessment proceedings, the Assessing Officer examined the issue and took a possible view that such income earned from the co-operative banks is also eligible for deduction u/s 80P(2)(d) of the Act. Similarly, it is submitted that as regards to the provision for expenses, even assuming for a moment that such provision cannot be allowed as deduction, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs. CIT, 243 ITR 83 (SC) and in the case of CIT vs. Max India Ltd., 295 ITR 282 (SC). The error in the assessment order should be one that it is not debatable or plausible view. In a case where the Assessing Officer examined the claim took one of the plausible views, the assessment order cannot be termed as an "erroneous". In the present case, we find that admittedly the interest income was earned from the cooperative banks, the cooperative bank is also a specie of cooperative society, therefore, the interest income earned by the cooperative society from the cooperative banks qualifies for deduction u/s 80(P)(2)(d) of the Act. Such interest also qualifies for exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & Haryana High Court in the case of CIT Vs. Punjab State Cooperative Agricultural Development Bank Ltd. 389 ITR 68 and the Hon'ble Kolkata High Court in the case of CIT Vs. Southern Eastern Employees Cooperative Credit Society Ltd. 390 ITR 524 took a view that the income arising on the surplus invested in short term deposits and securities cannot be attributed to the activities of the society and, therefore, not eligible for exemption u/s.80P(2)(a)(i) of the Act. However, the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 taxmann 309 (Kar.) and the Hon'ble Telangana and Hon'ble Andhra Pradesh High Court in the case of Vaveru Co-operative Rural Bank Ltd. v CIT [(2017) 396 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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