Sarjan Co-Op.Housing Society Ltd., Surat V. Pr.CIT-1,Surat, Surat

ITA 718/SRT/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7781 (ITAT-SURAT)
• Duration Of Justice: 2 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 19-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S T BIDARI
• Keywords: Wrong claim
• Section: 143(3); 142(1); 80P; 143(2); 119; 22; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM ./ITA NO.718/SRT/2018 ( [ [ / ASSESSMENT YEAR: (2014-15) (VIRTUAL COURT HEARING) SARJAN CO-OP. HOUSING SOCIETY LTD. SARJAN BHAVAN, ATHWALINES, SURAT, GUJARAT, PIN 395007 VS. PR.CIT-1 AAYKAR BHAVAN, MAJURAGATE, SURAT-395001 ./ ./ PAN/GIR NO.: AADAS2575C (ASSESSEE) (RESPONDENT) ASSESSEE BY : ESMAYEEL SAHERWALA, CA RESPONDENT BY : SHRI S. T. BIDARI CIT.DR / DATE OF HEARING : 15/07/2021 /DATE OF PRONOUNCEMENT : 23/08/2021 / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: BY WAY OF THIS APPEAL, THE ASSESSEE HAS CHALLENGED THE CORRECTNESS OF THE IMPUGNED ORDER PASSED BY THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX, SURAT-1, (IN SHORT LD.PCIT) DATED 10.10.2018 UNDER SECTION 263 OF THE INCOME TAX ACT, 1961, IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT) FOR THE ASSESSMENT YEAR 2014-15. GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS: (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. PR CIT- I, SURAT HAS ERRED IN DIRECTING THAT ORDER PASSED BY THE ASSESSING OFFICER SHALL BE DEEMED TO BE ERRONEOUS IN SO FAR AS IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE. THE ASSESSING OFFICER HAS FULLY INQUIRED ABOUT DEDUCTION CLAIMING U/S 80P(2)(D), VERIFIED AND AFTER HIS SATISFACTION, PASSED THE ORDER. THE ASSESSING OFFICER HAS NOT VIOLATED ANY INSTRUCTION, DIRECTION AND OR PROVISION OF SECTION 119 OF THE ACT. THE INITIATION OF ACTION U/S 263 IS ABSOLUTELY ILLEGAL, BAD IN LAW AND UNWARRANTED. (2) WITHOUT PREJUDICE TO ABOVE, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.PR CIT-I,SURAT HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO RECOMPUTE INCOME AFTER MAKING DISALLOWANCE OF WRONG CLAIMS OF RS.3157772/- U/S 80P(2)(D) OF THE ACT. PAGE | 2 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. (3) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. PR CIT- SURAT-I HAS ALSO ERRED IN INTERPRETING THE CONCEPT OF MUTUALITY; CONCEPT OF INVESTMENT, CONCEPT OF CO.OP.SOCIETY & BANK AND PROVISION OF SECTION 80P(2)(D ) OF THE ACT. (4) IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD PR CTI-SURAT-I, BE ANNUAL AND BE SET-ASIDE. 2. BRIEFLY STATED, THE RELEVANT MATERIAL FACTS ARE AS FOLLOWS. THE ASSESSEE, M/S SARJAN CO-OP HOUSING SOCIETY LTD, IS A CO-OPERATIVE HOUSING SOCIETY REGISTERED IN 1965 UNDER THE GUJARAT CO-OPERATIVE SOCIETIES ACT. THE MAIN OBJECT OF THE SOCIETY IS TO MAINTAIN THE ASSETS OF THE SOCIETY AND TO PROVIDE THE COMMON FACILITIES TO THE MEMBERS FOR WHICH THEY COLLECT CONTRIBUTIONS FROM THE MEMBERS. THE ASSESSEE FILED RETURN OF INCOME ON 26.08.2014, DECLARING TOTAL INCOME AT RS. NIL, AFTER CLAIMING DEDUCTION U/S 80P OF THE ACT. THE ASSESSEE HAS SHOWN INTEREST INCOME FROM SAVINGS BANK ACCOUNTS, BANK FIXED DEPOSITS, SALE PROCEEDS OF OLD NEWSPAPERS ETC. SCRUTINY ASSESSMENT U/S 143(3) OF THE ACT WAS FINALIZED ON 18.10.2016 ACCEPTING THE RETURNED INCOME SHOWN BY THE ASSESSEE. 3. LATER, LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX, SURAT-1 (LD PCIT), HAS EXERCISED HIS JURISDICTION UNDER SECTION 263 OF THE INCOME TAX ACT, 1961. ON PERUSAL OF SCRUTINY RECORDS, IT WAS NOTICED BY LD PCIT THAT ASSESSEE HAD OFFERED INCOME AT RS.NIL, AFTER CLAIMING DEDUCTION U/S 80P(2)(D) OF THE I.T. ACT, 1961 AMOUNTING TO RS.31,57,772/-, WHICH INCLUDES, FD INTEREST, SB INTEREST AND DIVIDEND INCOME FROM SURAT DIST CO-OP BANK LTD. I.E. ANOTHER CO-OPERATIVE SOCIETY. ON FINALIZATION OF THE SCRUTINY PROCEEDINGS, SAME WAS ALLOWED BY THE ASSESSING OFFICER. HOWEVER, AS PER SECTION 80P(2)(D) OF THE I.T. ACT, 1961, SAME WAS NOT ALLOWABLE AND IT WAS REQUIRED TO BE DISALLOWED. THUS, AS PER LD PCIT, THERE WAS AN UNDERASSESSMENT OF INCOME OF THE ASSESSEE BY RS.31,57,772/-. ON CONSIDERATION OF THESE IRREGULARITIES WHICH WERE ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE, ACTION U/S 263 OF THE I.T. ACT, 1961 WAS TAKEN BY THE LD PCIT FOR A.Y. 2014-15. ACCORDINGLY, A SHOW CAUSE NOTICE DATED 27.09.2018, WAS ISSUED BY THE LD PCIT, TO THE ASSESSEE, TO OFFER EXPLANATION, IF ANY, AS WELL AS TO ADDUCE EVIDENCE, IF ANY, AGAINST THE PROPOSAL OF REVISION U/S 263 OF THE ACT. PAGE | 3 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. 4. IN RESPONSE TO THE SHOW CAUSE NOTICE OF THE LEARNED PCIT, THE ASSESSEE APPEARED BEFORE THE LEARNED PCIT AND SUBMITTED WRITTEN SUBMISSIONS. THE RELEVANT PORTION OF THE WRITTEN SUBMISSION ARE REPRODUCED AS FOLLOWS: ' (1) ON READING AND INTERPRETING THE PROVISIONS OF SECTION 80P BY YOUR HONOUR IN THE SHOW CAUSE NOTICE VIDE PARA 2 AND VIEW TAKEN BY YOU IN PARA 3 I.E. ' THE ASSESSEE HAD OFFERED INCOME AT RS. NIL AFTER CLAIMING DEDUCTION U/S 80P(2)(D) AMOUNTING TO RS. 3157772/- EARNED FROM BANK INTEREST. HOWEVER, AS PER SECTION 80P(2)(D) OF THE ACT, THE SAME WAS NOT ALLOWABLE AND IT WAS REQUIRED TO BE DISALLOWED WHICH WAS NOT DONE IN THE ASSESSMENT PROCEEDINGS. THUS THERE WAS AN UNDERASSESSMENT OF INCOME OF THE ASSESSEE BY RS.3157772/-. IN VIEW OF THE ABOVE FACTS AND PROVISIONS OF LAW, THE ASSESSMENT ORDER PASSED U/S 143(3) OF THE I.T ACT, 1961 IN THIS CASE IS CONSIDERED ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE.' ARE SEEMS TO BE CONTRADICTORY/INCONSISTENT WITH THE IT PROVISIONS AND WE FEEL THAT THERE IS MISUNDERSTANDING AT YOUR END ABOUT SOURCE AND NATURE OF INTEREST. INTEREST EARNED ON DEPOSITS WITH ANOTHER CO-OPERATIVE BANK ONLY. WE HAVE RIGHTLY CLAIMED DEDUCTION U/S 80P(2)(D) FOR THE FOLLOWING INCOME AS PER COMPUTATION OF INCOME & AUDITED STATEMENT OF ACCOUNTS (XEROX COPY ATTACHED). I.INTEREST ON S/B A/C WITH THE SURAT DIST. CO OP BANK LTD. 22430/- II.INTEREST ON F/D WITH THE SURAT DIST. CO OP BANK LTD. 3135327/- III.DIVIDEND FROM THE SURAT DIST. CO OP BANK LTD. 15/- TOTAL 3157772/- SUB SECTION 2(D) OF SECTION 80P SAYS THAT ANY CO-OPERATIVE SOCIETY HAVE GROSS INCOME WHICH INCLUDES INTEREST OR DIVIDEND DERIVED FROM ITS INVESTMENTS WITH ANY OTHER CO-OPERATIVE SOCIETY, THE WHOLE SUCH INCOME IS ELIGIBLE FOR DEDUCTION. (2)THE SURAT DISTRICT CO OP BANK LTD. (FROM WHICH INTEREST/DIVIDEND INCOME IS EARNED] IS A DULY REGISTERED CO-OPERATIVE SOCIETY VIDE REG. NO. S.E./526 OF 1965. WE ARE ENCLOSING HEREWITH COPY OF LETTER ISSUED BY THE BRANCH MANAGER OF THE SURAT DISTRICT CO OP BANK LTD. IN THE SUPPORT OF THE SAME. (3)THE ISSUE WHETHER COOPERATIVE BANK IS CONSIDERED TO BE CO-OPERATIVE SOCIETY IS NO LONGER RES INTEGRA. FOR THE SAID ISSUE HAS BEEN DECIDED BY THE ITAT ITSELF IN DIFFERENT CASES. WE ARE ENCLOSING HEREWITH COPY OF HON'BLE ITAT JAIPUR DECISION IN THE CASE OF ITO VS. SHREE KESHORAI PATAN SAHAKARI SUGAR MILL DATED 31/01/2018 ALL ITAT (5246) ITAT JAIPUR (100). (4)FURTHER AS PER THE DEFINITION OF THE TERM CO-OPERATIVE BANK UNDER THE BANKING REGULATION ACT, 1949 READ WITH THE NABARD ACT, 1981, CO-OPERATIVE BANK IS A CO-OPERATIVE SOCIETY. (5)WE FURTHER BRING TO YOUR KIND NOTICE THAT MUMBAI TRIBUNAL IN THE CASE OF LANDS AND CO-OPERATIVE HOUSING SOCIETY LTD. VS. ITO IN ITA NO. PAGE | 4 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. 2379/MUM/2015 DATED 15/01/2016 HAS HELD THAT INTEREST EARNED BY CO- OPERATIVE HOUSING SOCIETY ON INVESTMENT WITH A CO-OPERATIVE BANK HAS BEEN ELIGIBLE FOR DEDUCTION U/S 80P(2)(D) OF THE ACT THE HON'BLE CIT(A) HAVE ALSO ALLOWED THE DEDUCTION U/S 80P(2)(D) OF THE ACT IN IDENTICAL CASES WHILE DECIDING THE APPEAL WHICH PLEASE NOTE. (6)PLEASE NOTE THAT WE HAVE NOT CLAIMED DEDUCTION U/S 80P(2)(A)( 1) OF THE ACT. (7)ALL THESE MATTER AND POINTS WERE RAISED AND DISCUSSED AT THE TIME OF ASSESSMENT PROCEEDING AND AFTER FULLY SATISFIED WITH THAT MATTER, THE ASSESSING OFFICER BYPASSED THE ASSESSMENT ORDER U/S 143(3) OF THE ACT. (8)UNDER THE ABOVE FACTS AND CIRCUMSTANCES, WE HEREBY STRONGLY OBJECT LOR YOUR PROPOSED ACTION TO REVISE THE ASSESSMENT MADE VIDE ORDER U/S 143(3) DATED 18/10/2016 FOR A.Y 2014-15 U/S 263 OF THE ACT AND REQUEST TO DROP THE ACTION INITIATED BY YOU. 5. LEARNED PCIT HAS GONE THROUGH THE SUBMISSIONS OF THE ASSESSEE AND OBSERVED THAT AS PER THE ACCOUNTS OF THE SOCIETY, THE SOCIETY HAS EARNED INTEREST INCOME OF RS.22,430/- FROM SAVINGS BANK ACCOUNT AND INTEREST OF RS.31,35,327/- ON FIXED DEPOSITS OF THE SURAT DISTRICT CO-OP. BANK LTD. THE LEARNED PCIT ALSO NOTED THAT ASSESSEE SOCIETY HAS OFFERED THIS INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES AND SHOWN TOTAL INCOME AT RS.NIL FOR A.Y. 2014-15, AFTER CLAIMING DEDUCTION TO THE TUNE OF RS.31,57,772/- UNDER S.80P OF THE ACT. THEREFORE, LEARNED PCIT OBSERVED THAT INTEREST EARNED BY THE ASSESSEE FROM THE OTHER SOURCES FROM THE SURAT DISTRICT CO-OP. BANK LTD. DO NOT QUALIFY FOR DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT, AS INTEREST EARNED BY A CO-OPERATIVE SOCIETY FROM SURPLUS DEPOSITS KEPT WITH A CO-OPERATIVE BANK ARE NOT ELIGIBLE FOR DEDUCTION. APART FROM THIS, LEARNED PCIT ALSO PLACED THE RELIANCE ON THE JUDGMENT OF HON'BLE HIGH COURT OF KARNATAKA IN THE CASE OF PRINCIPAL COMMISSIONER OF INCOME-TAX, HUBBALLI VS. TOTAGARS CO-OPERATIVE SALE SOCIETY [2017] 83 TAXMANN.COM 140 (KARNATAKA) WHEREIN IT WAS HELD BY THE COURT THAT INTEREST EARNED BY ASSESSEE, A CO-OPERATIVE SOCIETY, MARKETING MEMBERS AGRICULTURE PRODUCT, FROM SURPLUS DEPOSITS KEPT WITH A CO-OPERATIVE BANK, WAS NOT ELIGIBLE FOR DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT. PAGE | 5 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. IN VIEW OF THE ABOVE FACTS, LEARNED PCIT HELD THAT AS PER SECTION 80P(2)(D) OF THE ACT, THE DEDUCTION CLAIMED BY THE ASSESSEE WAS NOT ALLOWABLE AND IT WAS REQUIRED TO BE DISALLOWED WHICH WAS NOT DONE IN THE ASSESSMENT PROCEEDINGS. THEREFORE, LEARNED PCIT HELD THAT THERE WAS AN UNDER ASSESSMENT OF INCOME TO THE TUNE OF RS.31,57,772/-. THEREFORE, LEARNED PCIT HELD THAT THE ORDER PASSED BY THE AO UNDER SECTION143(3) OF THE ACT DATED 18.10.2016 IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE AND THEREFORE, HE DIRECTED THE AO TO PASS A FRESH ASSESSMENT ORDER AFTER CONSIDERING THE ABOVE ISSUES RAISED BY THE LEARNED PCIT. 6. AGGRIEVED BY THE ORDER OF LEARNED PCIT, THE ASSESSEE IS IN APPEAL BEFORE US. 7. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT DURING THE ASSESSMENT STAGE ASSESSEE HAS SUBMITTED EVERY DETAILS AND DOCUMENTS REQUIRED BY THE ASSESSING OFFICER. THE AO HAS PASSED THE ASSESSMENT ORDER UNDER SECTION 143(3) OF THE ACT AFTER VERIFICATION OF DOCUMENTS SUBMITTED BY THE ASSESSEE, THEREFORE, ORDER PASSED BY THE ASSESSING OFFICER IS NEITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF REVENUE. 8. ON THE OTHER HAND, SHRI S. T. BIDARI, LEARNED DR FOR THE REVENUE HAS RELIED ON THE ORDER OF LEARNED PCIT, VIDE PARA NO.4.1 OF ORDER OF PCIT, AND HE HAS SUBMITTED THAT LEARNED PCIT HAS PASSED A REASONED ORDER, AS THE ASSESSEE HAS HIMSELF SHOWN THE INTEREST INCOME FROM SAVINGS BANK ACCOUNT AND INTEREST FROM FIXED DEPOSITS UNDER THE HEAD INCOME FROM OTHER SOURCES. THEREFORE, THE ASSESSEE IS NOT ENTITLED TO CLAIM DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT AND THE JURISDICTION EXERCISED BY THE LEARNED PCIT, THEREFORE, SHOULD BE UPHELD. 9. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE SUBMISSION PUT FORTH ON BEHALF OF THE ASSESSEE ALONG WITH THE DOCUMENTS FURNISHED AND THE CASE LAWS RELIED UPON, AND PERUSED THE FACT OF THE CASE INCLUDING THE FINDINGS OF THE LD PCIT AND OTHER MATERIALS BROUGHT ON RECORD. WE NOTE THAT IN THE ASSESSMENT ORDER PASSED BY THE AO UNDER SECTION 143(3) OF THE ACT, DATED 18.10.2016, THE ASSESSING OFFICER HAS VERIFIED THE INTEREST INCOME OF SAVING BANK ACCOUNT AND PAGE | 6 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. INTEREST FROM FIXED DEPOSIT. THE ASSESSMENT ORDER SO FRAMED BY THE ASSESSING OFFICER IS REPRODUCED BELOW: RETURN OF INCOME FOR AY. 2014-15 DECLARING NIL INCOME AFTER CLAIM OF DEDUCTION U/S 80P OF THE I.T.ACT WAS FILED BY THE ASSESSEE ON 26/08/2014 CONSEQUENT TO SELECTION OF THE CASE FOR SCRUTINY, STATUTORY NOTICE U/S 143(2) OF THE I.T.ACT DATED 21/09/2015 WAS ISSUED BY POST AND WAS SERVED IN TIME. A NOTICE U/S 142(1) DATED 07/04/2016 WAS ISSUED, CALLING FOR BASIC DOCUMENTS AND DETAILS TO FACILITATE PREPARATION AND ISSUE OF A QUESTIONNAIRE. SUBSEQUENTLY, NOTICE U/S 129 R.W.S. 142(1) DATED 08/09/2016 HAS BEEN ISSUED ON ACCOUNT OF CHANGE IN INCUMBENT ASSESSING OFFICER, CALLING FOR FURTHER DETAILS, DOCUMENTS AND EXPLANATIONS RELEVANT TO THE CASE. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE, SHRI JAYESH J BHAVSAR, CA ATTENDED ON VARIOUS DATES AND FURNISHED RELEVANT DETAILS, DOCUMENTS, EXPLANATION, CLARIFICATIONS ETC. THE CASE WAS DISCUSSED WITH THE AR ON THE DALES OF HEARINGS. RELEVANT DETAILS, AS REQUIRED VIDE QUESTIONNAIRE AND AS REQUIRED IN THE COURSE OF DISCUSSIONS DURING .HEARINGS HAVE BEEN FILED VIDE LETTERS DATED 18/04/2016, 22/09/2016, 17/10/2016 AND THEIR ANNEXURE. THE SAME ARE EXAMINED AND PLACED ON RECORD. THE ASSESSEE IS A CO-OPERATIVE HOUSING SOCIETY REGISTERED IN 1965 UNDER THE GUJARAT CO- OPERATIVE SOCIETIES ACT. AS PER DETAILS, THE MAIN OBJECT OF THE SOCIETY IS TO MAINTAIN THE ASSETS OF THE SOCIETY AND TO PROVIDE THE COMMON FACILITIES TO THE MEMBERS FOR WHICH THEY COLLECT CONTRIBUTIONS FROM THE MEMBERS. THE ASSESSEE HAS SHOWN INCOME FROM OTHER SOURCES COMPRISING INTEREST INCOME FROM SAVINGS BANK ACCOUNTS, BANK FIXED DEPOSITS, SALE PROCEEDS OF OLD NEWS PAPERS ETC. AFTER VERIFICATION OF DETAILS, DOCUMENTS AND EXPLANATIONS AND DISCUSSION WITH THE AR, THE INCOME RETURNED BY THE ASSESSEE IS ACCEPTED. RETURNED INCOME NIL ASSESSED INCOME NIL ASSESSED U/S 143(3) OF THE I.T.ACT AT THE RETURNED NIL INCOME. CALCULATE TAX AND INTEREST ACCORDINGLY. GIVE CREDIT FOR PRE-PAID TAXES. ISSUE NECESSARY FORMS. 10. FROM THE ABOVE ASSESSMENT ORDER, IT IS ABUNDANTLY CLEAR THAT ASSESSEE HAS SHOWN INCOME FROM OTHER SOURCES COMPRISING INTEREST INCOME FROM SAVINGS BANK ACCOUNT, FIXED DEPOSITS, SALE PROCEEDS OF OLD NEWSPAPERS. THE AO HAS EXAMINED THESE ISSUES IN RESPECT OF INTEREST AND INTEREST ON FIXED DEPOSITS, AND TOOK A POSSIBLE VIEW, THEREFORE, ORDER PASSED BY THE AO IS NEITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF THE REVENUE. PAGE | 7 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. 11. WE NOTE THAT SOLITARY GRIEVANCE OF THE ASSESSEE, IN THIS APPEAL IS THAT WHETHER INTEREST ON SAVINGS BANK ACCOUNT AND INTEREST FROM FIXED DEPOSITS ARE ELIGIBLE FOR DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT OR NOT, SPECIALLY WHERE THE ASSESSEE HAS SUBMITTED THE DETAILS OF INTEREST ON SAVINGS BANK ACCOUNT AND INTEREST ON FIXED DEPOSIT BEFORE THE AO. WE NOTE THAT DURING THE ASSESSMENT STAGE, ASSESSEE HAS SUBMITTED THE DETAILS OF INTEREST INCOME FROM SAVINGS BANK ACCOUNT AND INTEREST INCOME FROM FIXED DEPOSITS BEFORE THE AO WHICH IS EVIDENT FROM PAGE NO.2 OF THE ORDER OF THE ASSESSING OFFICER PASSED BY HIM UNDER SECTION 143(3) OF THE ACT, DATED 18.10.2016. JUST BECAUSE, THE ASSESSEE HAS, BY MISTAKE AND INADVERTENTLY, MENTIONED THE INTEREST ON SAVING BANK AND INTEREST ON FIXED DEPOSITS UNDER THE HEAD INCOME FROM OTHER SOURCES , DOES NOT MEAN THAT ASSESSEE WOULD NOT BE ELIGIBLE TO CLAIM DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT. RIGHT INCOME SHOULD BE TAXABLE IN THE HANDS OF THE ASSESSEE IN THE RIGHT ASSESSMENT YEAR. INCOME RETURNED UNDER AN ERRONEOUS UNDERSTANDING OR MISCONCEPTION OF LAW IS NOT CHARGEABLE UNDER THE ACT [ABDUL V CIT 184 ITR 404]. 12. WE ALSO NOTE THAT DURING THE ASSESSMENT PROCEEDINGS, THE AO HAS ISSUED NOTICE UNDER SECTION 142(1) OF THE ACT, DATED 8 TH SEPTEMBER, 2016, WHEREIN THE AO ASKED THE ASSESSEE TO FURNISH THE DETAILS, DOCUMENTS AND EXPLANATIONS ABOUT THE DEDUCTION CLAIMED UNDER CHAPTER VIA OF THE ACT. THE RELEVANT PARA OF THE NOTICE UNDER SECTION 142(1) OF THE ACT, ( TO THE EXTENT RELEVANT FOR OUR ANALYSIS) IS REPRODUCED BELOW: IN RESPECT OF DEDUCTIONS CLAIMED UNDER CHAPTER VIA OF THE I.T. ACT, PLEASE FURNISH DETAILS, DOCUMENTS AND EXPLANATIONS TO ESTABLISH CORRECTNESS, GENUINENESS AND ALLOWABILITY OF THE CLAIMS. THE DETAILS MAY BE FURNISHED IN TABULAR FORM CITING ON ONE SIDE THE CONCERNED SECTION WISE PROVISIONS IN THE INCOME TAX ACT AND CITING ON THE CORRESPONDING OTHER SIDE, DETAILS, DOCUMENTS, EXPLANATIONS, CLARIFICATIONS ETC. TO ESTABLISH THAT THE CONCERNED SECTION WISE PROVISIONS OF THE ACT ARE DULY SATISFIED BY THE ASSESSEE FOR CLAIMING THE DEDUCTION. CERTIFIED COPIES OF DOCUMENTARY EVIDENCE IN SUPPORT OF THE DETAILS, DOCUMENTS, EXPLANATIONS, CLARIFICATIONS ETC. MAY ALSO BE FURNISHED. 13. IN RESPONSE TO THE NOTICE OF THE AO UNDER SECTION 142(1) OF THE ACT, THE ASSESSEE HAS SUBMITTED ITS REPLY, DATED 22 ND SEPTEMBER, 2016, WHICH IS REPRODUCED BELOW (TO THE EXTENT RELEVANT FOR OUR ANALYSIS): PAGE | 8 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. TO, 22/09/2016 THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1 [3], AAYKAR BHAVAN, ROOM NO.301, MAJURA GATE, SURAT. SUB: ASSESSMENT PROCEEDINGS IN THE CASE OF SARJAN CO.OP.HOUSING SOCIETY LIMITED FOR THE A.Y.2014-15.PAN NO.AADAS2575C REF:YOUR NOTICE U/S 142[1] R.W.S.129 DT.08/09/16 DEAR SIR, WITH REFERENCE TO ABOVE & AS PER YOUR REQUIREMENT WE ARE SUBMITTING HEREWITH FOLLOWING DETAILS. FIRST OF ALL WE WOULD LIKE TO STATE THAT WE HAVE RECEIVED YOUR NOTICE DT.8/9/16 ON 21/9/2016 HENCE WE COULD NOT ATTEND THE HEARING FIXED BY YOU ON 19/9/2016. 1.REGARDING JUSTIFICATION FOR DEDUCTION CLAIMED U/S 80P AMOUNTING TO RS.3166903 FOR THE A.Y.2014-15 OF THE INCOME TAX ACT, 1961 WE REPRODUCED HEREWITH BASIC PROVISIONS WHICH READ AS UNDER. (1)WE BEING A CO OP HOUSING SOCIETY ARE ELIGIBLE FOR DEDUCTION U/S. 80P (1) READ WITH 80P (2) (C) AND (D) OF THE ACT. THE RELEVANT PROVISIONS ARE: 80P: 1) WHERE , IN THE CASE AN ASSESSEE BEING A CO - OPERATIVE SOCIETY, THE GROSS TOTAL INCOME INCLUDES ANY INCOME REFERRED TO IN SUB- SECTION(2),THERE SHALL BE DEDUCTED, IN ACCORDANCE WITH AND PROVISIONS OF THE SECTION, THE SUMS SPECIFIED IN SUB-SECTION(2), IN COMPUTING THE TOTAL INCOME OF THE ASSESSEE. 2) (C) IN THE CASE OF A CO OPERATIVE SOCIETY ENGAGED IN ACTIVITIES OTHER THAN THOSE SPECIFIED IN CLAUSE (A) OR CLAUSE (B) (EITHER INDEPENDENTLY OF, OR IN ADDITION TO, ALL OR ANY OF THE ACTIVATES SO SPECIFIED) ,SO MUCH OF ITS PROFITS AND GAINS ATTRIBUTABLE TO SUCH ACTIVITIES AS [ DOES NOT EXCEED.- 14. THEREFORE, WE NOTE THAT DURING THE ASSESSMENT STAGE, THE AO REQUIRED THE EXPLANATIONS AND DOCUMENTS FROM THE ASSESSEE IN RESPECT OF INTEREST FROM SAVINGS BANK ACCOUNT AND INTEREST ON FIXED DEPOSITS AND IN RESPONSE THE ASSESSEE HAS SUBMITTED THE DETAILS OF INTEREST INCOME AND JUSTIFICATION TO CLAIM DEDUCTION UNDER SECTION 80P OF THE ACT. THEREFORE, THE AO HAVING EXAMINED THE SUBMISSIONS AND DOCUMENTS FILED BY THE ASSESSEE, PASSED THE ORDER UNDER SECTION 143(3) OF THE ACT DATED 18.10.2016. WE ALSO NOTE THAT ASSESSMENT ORDER PASSED BY THE ASSESSING PAGE | 9 ITA NO.718/SRT/2018 FOR A.Y. 2014-15 SARJAN CO-OP. HOUSING SOCIETY LTD. OFFICER IS SUSTAINABLE IN LAW, AS THE COORDINATE BENCH OF ITAT MUMBAI IN THE CASE OF LANDS AND CO-OPERATIVE HOUSING SOCIETY LTD. VS. ITO IN ITA NO. 2379/MUM/2015 DATED 15/01/2016, HAS HELD THAT INTEREST EARNED BY CO-OPERATIVE HOUSING SOCIETY ON INVESTMENT WITH A CO-OPERATIVE BANK IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(D) OF THE ACT. THE JURISDICTION UNDER SECTION 263 CAN BE EXERCISED ONLY WHEN BOTH THE FOLLOWING CONDITIONS ARE SATISFIED, THAT IS: (I) THE ORDER OF THE ASSESSING OFFICER SHOULD BE ERRONEOUS, AND (II) IT SHOULD BE PREJUDICIAL TO THE INTERESTS OF THE REVENUE. THESE CONDITIONS ARE CONJUNCTIVE. AN ORDER OF ASSESSMENT PASSED BY THE ASSESSING OFFICER SHOULD NOT BE INTERFERED WITH ONLY BECAUSE ANOTHER VIEW IS POSSIBLE, AS HELD BY HON`BLE SUPREME COURT IN THE CASE OF CIT VS. GREEN WORLD CORPORATION (2009) 181 TAXMAN 111/314 ITR 81 (SC) HENCE, SUCH ORDER PASSED BY THE AO IS NEITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF THE REVENUE. THEREFORE, WE QUASH THE REVISION PROCEEDINGS INITIATED BY THE LEARNED PCIT UNDER SECTION 263 OF THE ACT. 15. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER IS PRONOUNCED ON 23/08/2021 BY PLACING RESULT ON NOTICE BOARD. S SD/- SD/- (PAWAN SINGH) (DR. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER SURAT / / DATE: 23/08/2021 / SKS COPY OF THE ORDER FORWARDED TO 1. THE ASSESSEE 2. THE RESPONDENT 3. THE CIT(A) 4. PR.CIT 5. DR/AR, ITAT, SURAT 6. GUARD FILE BY ORDER // TRUE COPY // / / TRUE COPY / / ASSISTANT REGISTRAR/SR. PS/PS ITAT, SURAT