ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)

1. This Tax Appeal is filed under section 260A of the Income Tax Act,1961 [for short ‘the Act’] by the appellant-Revenue proposing following substantial questions of law arising out of the Judgement and Order dated 14.12.2023 passed by the Income Tax Appellate Tribunal, Surat [for short ‘the Tribunal’] in ITA No. 653/SRT/2023 for assessment Year 2018-19:

“(i) Whether on facts and circumstances of the case and in law, the Hon’ble Tribunal has erred in quashing the order passed u/s. 263 of the Act by the PCIT without appreciating that the interest received by the assessee co-perative society amounting to Rs. 8,40,577/- from the Surat District Co-operative Bank Ltd is not eligible for deduction u/s. 80P(2)(d) of the Act as the said bank is not a cooperative society as laid down u/s. 80P(4) of the Act?

(ii) Whether on facts and circumstances of the case and in law, the Hon’ble Tribunal had erred in allowing the appeal of the assessee by overlooking the fact that the Hon’ble High Court of Karnataka in the case of Totgars Cooperative Sale Society (2017) 395 ITR 611 has held that the intention of legislature is clear that Co-op