Revision u/s 263 Quashed: AO’s Plausible View on 80P Deduction Cannot Be Substituted by PCIT

Bharath Credit Co-operative Society Limited Vs PCIT (ITAT Bangalore) In this case, the assessee, a co-operative credit society, claimed deduction under section 80P(2)(a)(i) on interest income earned from deposits made with banks out of its surplus funds. The Assessing Officer (AO), during limited scrutiny, specifically examined the nature and taxability of such interest and accepted the claim after calling for detailed explanations and supporting evidence. The Principal Commissioner invoked revisionary powers under section 263 on the ground that the AO had wrongly allowed deduction on bank int...