Calicut City Service Co-Operative Bank Ltd, Calicut V. The ITO Ward-1(1), Kozhikode

ITA 102/COCH/2022

AI Insights

The case involves Calicut City Service Cooperative Bank Ltd., which appealed against a revisional order passed by the Principal Commissioner of Income Tax, Kozhikode. The revisional order, issued under section 263 of the Income Tax Act, challenged the initial assessment made by the Assessing Officer under section 143(3), which had allowed certain deductions under section 80P. The Principal Commissioner noted that additional provisions totaling Rs.1652.93 Lacs, which were not added by the Assessing Officer, needed verification as they were in the nature of contingent liabilities and not allowable. The Tribunal dismissed the appeal, supporting the revisional authority's direction for a re-examination of these provisions in light of the Supreme Court's decision in The Mavilayi Service Cooperative Bank Ltd.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 134587 (ITAT-COCHIN)
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 31-12-0000
• Assessment Year: misc
• Appeal Filed On: 15-03-2022
• Other Referred Cases: The Mavilayi Service Cooperative Bank Ltd. (431 ITR 1)
• Laws Referred To: Kerala Cooperative Societies Act, Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 80P

Judgement Text

आयकर अपीलीय अिधकरण, कोचीन पीठ, कोचीन म । IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN माननीय %ी सतबीर िसंह गोदारा, -ाियक सद. एवं माननीय %ी मनोज कु मार अ3वाल ,लेखा सद. के सम6। BEFORE HON’BLE SHRI SATBEER SINGH GODARA, J.M AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, A.M आयकर अपील सं./ ITA No.102/Coch/2022 (िनधा@रण वष@ / Assessment Year: 2017-18) Calicut City Service Cooperative Bank Ltd. 19/1180-B, City Bank Building, Challapuram, Calicut-673 002. बनाम/ V s. ITO Ward-1(1), Kozhikode. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAB AC - 7 8 6 3 - M (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : None थ की ओरसे/Respondent by : Shri M. Rajasekhar (CIT) – Ld. DR सुनवाई की तारीख/Date of Hearing : 10-11-2022 घोषणा की तारीख /Date of Pronouncement : 30-11-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of revisional order passed by learned Principal Commissioner of Income Tax, Kozhikode [Pr.CIT] on 22-02-2022 u/s 263 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 23-12-2019. In this appeal, the assessee challenges the validity of jurisdiction of revisional authority as exercised u/s 263. At the time of hearing, none appeared for assessee and ITA No.102/Coch/2022 - 2 - accordingly, the hearing was proceeded with the able assistance of Ld. CIT-DR who pleaded for dismissal of the appeal. 2. From the record, it could be seen that the assessee is registered under Kerala Cooperative Societies Act having banking as its principal business. The assessee claimed deduction u/s 80P for Rs.322.33 Lacs on the ground that it was primary agricultural society. However, Ld. AO rejected the claim of the assessee and denied the said deduction and assessed the income at Rs.322.33 Lacs. 3. Subsequently, Ld. Pr. CIT, upon perusal of case record, sought revision of the order on the ground that various provisions aggregating to Rs.1652.93 Lacs were not added by Ld. AO while framing the assessment. The same were in the nature of contingent liability and not allowable. Accordingly, Ld. AO was directed to verify the stated issue in the light of decision of Hon’ble Supreme Court in the case of The Mavilayi Service Cooperative Bank Ltd. (431 ITR 1). Aggrieved, the assessee is in further appeal before us. 4. Upon perusal of record, the undisputed position that emerges is that the issue flagged by revisional authority was not verified by Ld. AO during the course of assessment proceedings. The Ld. AO has relied upon the decision of Hon’ble High Court of Kerala in The Mavilayi Service Cooperative Bank Ltd. which has since been reversed by Hon’ble Supreme Court. The Ld. Pr. CIT has directed Ld. AO to consider the issue of verification of provisions in the light of the decision of Hon’ble Supreme Court which is quite apt and could not be faulted with. Therefore, since it is the case of no enquiry by Ld. AO on the issues flagged by Ld. Pr. CIT, no fault could be found in the impugned order. The assessee is free to advance all the arguments in ITA No.102/Coch/2022 - 3 - support of its claim u/s 80P(2)(a)(i). Our adjudication would not be construed as any reflection on the merits of the case. We order so. 5. The appeal stands dismissed. Order pronounced on 30 th November, 2022. Sd/- (SATBEER SINGH GODARA) -ाियक सद. /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद. / ACCOUNTANT MEMBER िदनांक / Dated : 30-11-2022 EDN/- Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) -NFAC, Delhi 4. The CIT - 5. The DR, ITAT, Cochin 6. Guard File