TMI Blog2023 (2) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and that of case referred above nor has placed any contrary binding decision in its support. Thus, we hold that the order framed under section 263 of the Act is unsustainable. Hence, the ground of appeal of the assessee is allowed. - ITA No. 281/Ahd/2020 - - - Dated:- 17-2-2023 - Ms. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Shri J aimin Shah, C. A. For the Revenue : Shri Sudhendu Das, CIT-DR ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER: - This appeal is filed by the Assessee as against the Revision order dated 09.03.2020 passed by the Principal Commissioner of Income Tax, Gandhinagar under section 263 of the Income Tax Act, 1961 (hereinafter ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank Ltd. Rs. 2,39,420/- Over all interest received - Rs. 12,06,965/- 2.3. The Assessing Officer allowed the interest income deductible u/s. 80P(2) of the Act which was otherwise not allowable in the light of the principles enunciated by the Hon ble Karnataka High Court in Totgars Co-operative Sales Society reported in 83 Taxmann.com 140 (Karnataka). Hence a show cause notice was issued to the assessee calling for its explanation. The assessee filed a detailed reply stating that the Hon ble Karnataka High Court judgment will not applicable which is being distinguished by the Hon ble Gujarat High Court in the case of SBI Employees Cooperative Credit Supply Society vs. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has is a co-operative society has earned interest income from Co-op. Bank registered under co-operative societies Act, which is exempted u/s. 80P(2)(d) of the Income Tax Act, 1961. Therefore the order passed u/s. 263 of the I.T. Act, 1961 is required to be quashed. 5. The commissioner ought to have considered while framing the order under section 263 that the assessment had been framed by the assessing officer after making all necessary enquiries and after considering the law applicable in the circumstances of the case and therefore, the order of assessment was not passed in undue haste and without proper enquiry and therefore, such order could not be considered as erroneous within the meaning of section 263 of the Income Tax Act 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the sides and also perused the relevant material available on record. As submitted by the learned Counsel for the assessee, the assessment completed by the Assessing Officer under Section 143(3) of the Act allowing the similar claim of the 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 his order passed under Section 263 of the Act in the case of the People Co-op Credit Society Ltd by relying on the decision of Hon ble Karnataka High Court in the case of Totgars Cooperative Sale Society (supra) and, on appeal by the assessee, the Coordinate Bench of this Tribunal vide its order dated 21.02.2022 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the decision of State Bank of India vs. CIT (2016) 72 Taumann.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 23 or the Act. This Section 263 does not sustain and appeal of the assessee is allowed 5. The issue involved in the present case a thus squarely covered by the decision rendered by the Tribunal in the case of the People Co-op. Credit Society Ltd. (supra), wherein a similar issue involving identical facts and circumstances has been decided by the Tribunal in favour of the assessee and even the learned DR has not been able to dispute this position. We, therefore, follow the said decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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