Pune ITAT Quashes 263 Revision: AO’s View on Section 80P Deduction Found Plausible

Dhanalaxmi Mahila Gramin Bigarsheti Sahakari Patsanstha Ltd. Vs PCIT (ITAT Pune) Assessee, a co-operative credit society, filed return declaring Nil income after claiming deduction of ₹26.02 lakh u/s 80P(2)(a)(i). The case was selected for scrutiny. AO, after issuing notices u/s 143(2)/142(1) & considering replies dated 18.02.2022, accepted the claim & completed assessment u/s 143(3) r.w.s. 144B. Subsequently, the Pr. CIT invoked s.263, alleging that the AO had failed to: Disallow interest income earned from deposits with other co-operative banks, treating it wrongly as business inc...