Pune Zilha Madhyawarti Sahakari Vs PCIT (ITAT Pune)
ITAT Pune held that revisionary order under section 263 of the Income Tax Act is liable to be quashed as AO conducted detailed enquiry and after proper application of mind has taken one of the view legally permissible and concluded the assessment. Accordingly, appeal allowed.
Facts- The assessee is a Cooperative Society. Post scrutiny assessment, PCIT examined the assessment record and under the provisions of section 263 of the Act issued a show cause notice to the assessee on 18.02.2025 mainly on the issue of claiming deduction under section 80P of the Income Tax Act. PCIT was not satisfied with these submissions and he observed that the order of the AO is erroneous in so far as it is prejudicial to the interest of Revenue and had partly set-aside to the file of AO for the limited purpose of examining the issue of deduction under section 80P. Being aggrieved, the present appeal is filed.
Conclusion- Held that AO has conducted detailed enquiry on all the issues referred by ld. PCIT in the show cause notice issued u/s.263 of the Act and after proper application of mind has taken one of the view legally permissible and concluded the assessment. We therefore find that the assessment order dated for A.Y. 2021-22 is neither erroneous nor prejudicial to the interest of Revenue. Impugned finding given by ld. PCIT is set-aside and the order u/s.263 is hereby quashed and the assessment order dated 02.12.2022 is restored to its original place. Grounds of appeal raised by the assessee are allowed. In the result, appeal of the assessee is allowed.
