SRI RAMASEVA BAHUSARA KSHARIYA CO-OP. SOCIETY LIMITED,SHIMOGA vs. PR. CIT, BENGALURU-1, BENGALURU

ITA 861/BANG/2025Status: DisposedITAT Bangalore30 January 2026AY 2020-21Bench: SHRI PRASHANT MAHARISHI (Vice President), SHRI KESHAV DUBEY (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer's order was neither erroneous nor prejudicial to the interest of the revenue. Following Supreme Court and jurisdictional High Court decisions, the Tribunal found that where two views are possible and the AO has taken a plausible view, the Commissioner cannot invoke Section 263.

What were the facts?

The assessee, a co-operative society, claimed deduction under Section 80P(2)(a)(i) for interest income earned on investments. The Assessing Officer allowed this deduction. However, the Principal CIT invoked Section 263, holding the order erroneous and prejudicial to revenue, citing that interest income from investments in banks/financial institutions other than co-operative societies is not eligible for deduction under Section 80P(2)(a)(i).

What were the issues?

Whether the Principal CIT was justified in invoking Section 263 to revise an assessment order where the Assessing Officer had allowed a deduction based on a plausible interpretation of law, even if another view was possible?

Which sections of the Income-tax Act were involved?

Section 263,Section 80P(2)(a)(i),Section 56

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(22)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI KESHAV DUBEY

Hearing: 11.12.2025Pronounced: 30.01.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of ld. PCIT, Bengaluru-1 dated 05.02.2025 vide DIN & Order No. ITBA/REV/F/REV5/2024-25/1072922073(1) passed u/s 263 of the Income Tax Act, 1961 (in short “the Act”) for the assessment year 2020-21. 2. The assessee has raised the following grounds of appeal: M/s. Sri Ramaseva BahusaraKshariya Co-Op. Society Ltd., Shimoga M/s. Sri Ramaseva BahusaraKshariya Co-Op. Society Ltd., Shimoga M/s. Sri Ramaseva BahusaraKshariya Co-Op. Society Ltd., Shimoga

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →