State Bank Of India v. CIT

Rena Sahakari Sakhar Karkhana Ltd, Latur vs. Pr. Commissioner of Income-Tax -2, Aurangabad

Bench: Shri Inturi Rama Rao, Am & Shri Ravish Sood, Jm Assessment Year :2013-14 Rena Sahakari Sakhar Karkhana Ltd., A/P Niwada, Tq. Renapur, Dist. Latur. ……….Appellant Pan No. Aaaar1864N V/S. Pr. Commissioner Of Income-Tax 2, Aurangabad ……… Respondent Assessee By : Shri Girish Ladda, A.R Department By : Shri Kalika Singh, D.R Date Of Hearing : 06-01-2022 Date Of Pronouncement : 07-01-2022 Order Per Ravish Sood, Jm The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By The Pr. Commissioner Of Income Tax-2, Aurangabad, Dated 27.03.2018 Under Sec.263 Of The Income Tax Act, 1961 (For Short „Act‟), Which In Turn Arises From The Order Passed By The A.O U/S 143(3) Of The Act, Dated 07/03/2016. The Assessee Has Assailed The Impugned Order On The Following Grounds Of Appeal Before Us: “1. The Notice Issued U/S 263 By The Principal Commissioner Of Income-Tax-2, Aurangabad & The Order Passed U/S 263 Are Illegal, Bad In Law & Without Jurisdiction. 2. That Having Regard To The Facts & Circumstances Of The Case, Pr. Cit Has Erred In Law & On Facts In Assuming Jurisdiction In Passing The Order U/S 263, More So When The Assessment Order Passed U/S 143(3) Is Neither Erroneous Nor Prejudicial To The Interest Of Revenue. 3. The Pr. Cit-2 Erred In Holding That Assessee Not Eligible For Deduction Of Rs. 75,38,534 U/S 80P(2)(D) Of The Income-Tax Act & Further Erred In Setting Aside The Issue To The A.O.

…We further find that the Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon’ble High Court of Gujarat in the case of State Bank Of India Vs. CIT (2016) 389 ITR 578 (Guj), had held, that the interest income earned by the assessee on its investments with a co-operative bank would be eligible for claim of deduction under Sec. 80P(2)(d) of the Act. Still further, we find that the CBDT Circular No. 14, dated 28.12.2006 also makes it clear beyond any scope of doubt that the purpose behind enactment of sub-section…