9911796707
TMI Blog2023 (8) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... facts. 2. That the ld Pr. CIT has erred on facts and in law in invoking the provisions of Section 263 of the Income Tax Act, 1961 which are not at all applicable on the facts of the case. 3. That the Ld. Pr.CIT has erred on facts and in law in directing the AO to disallow the exemption of interest income of Rs.35,89,839/- earned by the appellant from the funds kept with Delhi State Co- operative Bank Ltd. 4. That the impugned appellate order is arbitrary, illegal, bad in law and the violation of rudimentary principle of contemporary jurisprudence. 3. The ld counsel of the assessee submitted that the impugned revisionary order passed by the ld PCIT, Delhi u/s 263 of the Income Tax Act, 1961 (for short the Act) dated 25.02.2022 for AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the authorities below have rightly disallowed the claim of the assessee u/s 80P(2) on the interest earned by its from the deposits with the cooperative bank. 6. Placing rejoinder to the above, the ld counsel of assessee drew our attention towards brief synopsis filed and submitted that the ld PCIT has cancelled the assessment and directed the AO to make afresh de novo assessment order without any enquiry and verification, therefore, the impugned revisionary order is not sustainable. He further submitted that even on merit the AO was right in allowing claim of the assessee as the appellant has filed return of income where deduction u/s 80P of the Act was claimed by the appellant against the interest income received from deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT (supra) the assessee was multi state primary cooperative bank and not doing any activity falling in purview of a cooperative society therefore, the tribunal ruled against the assessee that once the assessee falla in the definition of cooperative bank the benefit of deduction u/s 80P of the Act was not available to the assessee in view of the sub-section 4 of section 80P of the Act. 9. In the case of PCIT Vs. Totagars Co-operative Sale Society the Hon'ble Karnataka High Court held that for the purpose of section 80P(2)(d) a co-operative bank should be considered by a cooperative society and interest earned by cooperative society from cooperative bank would necessarily be deductible u/s 80P(1) of the Act. 10. Similar view was taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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