M/s.Madakimala Service Co-op Bank Ltd, Wynad V. The ITO, Calicut

ITA 123/COCH/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7523 (ITAT-COCHIN)
• Duration Of Justice: 11 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 04-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 18-02-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: R KRISHNAN
• Section: 6

Judgement Text

8 APPEALS (CO - OPERATIVE BANK) 1 IN THE INCOME TAX APPEL L A TE T R IBUNAL COCHIN BENCH , COCHIN BEFORE S/SH RI B P JAIN , A M & G EORGE GEORGE.K , J M ITA NOS. 123 & 124/COCH2015 (ASST YEAR 2008 - 09 & 2011 - 12 ) M/S MADAKKIMALA SERVICE COOPERATIVE BANK LTD MADAKKIMALA PO WAYANAD DIST - 673 121 PAN N O: AACTM7277K VS THE INCOME TAX OFFICER WARD 1(4), KOZHIKODE ( APPELLANT) (RESPONDENT) ITA NO. 125/COCH2015 (ASST YEAR 2011 - 12 ) & ITA NO. 483/COCH/2014 (ASST YEAR 2010 - 11) M/S MEENAGADI SERVICE COOPERATIVE BANK LTD MEENANGADI - PO WAYANAD DIST - 673 591 PAN NO: AABAM3681M VS THE INCOME TAX OFFICER WARD 1(4), KOZHIKODE ( APPELLANT) (RESPONDENT) ITA NO. 126 /COCH/201 5 (ASST YEAR 201 1 - 12 ) M/S THARUVANA SERVICE COOPERATIVE BANK LTD THARUVANA - PO WAYANAD DIST - 673 732 PAN NO: AA CAT0810C VS THE INCOME TAX OFFICER WARD 1(4), KOZHIKODE ( APPELLANT) (RESPONDENT) ITA NO S . 494 TO 49 6 /COCH201 4 (ASST YEAR S 2008 - 09 , 2010 - 11 & 2011 - 12 ) M/S KALPETTA SERVICE COOPERATIVE BANK LTD KALPETTA PO WAYANAD DIST - 673 121 PAN NO: AAAAT9488J VS THE INCOME TAX OFFICER WARD 1(4), KOZHIKODE ( APPELLANT) (RESPONDENT) 8 APPEALS (CO - OPERATIVE BANK) 2 ASSESSEE BY SHRI R KRISHNAN REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 4 TH FEB 2015 DATE OF PRONOUNCEMENT 5 TH FEB 2016 OR D ER PER GEORGE GEORGE. K. J M: THESE 8 APPEAL S , AT THE INSTANCE OF DIFFERENT ASSESSEES, ARE DIRECTED AGAINST VARIOUS ORDERS OF THE CIT(A). 2 I N ALL THESE AP PEALS, COMMON ISSUE IS INVOLVED ; THEREFORE , THEY WERE HEARD TOGETHER AND DISPOSE OFF BY THIS CONSOLIDATED ORDER. T HE SOLITARY ISSUE THAT IS RAISED IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE ACTION OF THE AO IN DENYING THE BENEFIT OF DEDUCTION U/S 80P(2) OF THE ACT. 3 BRIEFLY STATED THE FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSEE, IS A COOPERATI VE SOCIETY AND HAD CLAIMED DEDUCTION U/S 80P(2) OF THE ACT. THE AO WHILE COMPLETING THE ASSESSMENT S HAD DISALLOWED THE CLAIM OF DEDUCTION U/S 80P(2) ON THE GROUND THAT SUBSEQUENT TO THE INTRODUCTION OF SUB.SEC (4) TO SECTION 80P OF THE ACT, THE COOPERATIVE SO CIETIES, WHO ARE DOING THE BUSINESS OF BANKING , ARE NOT ENTITLED TO BENEFIT OF DEDUCTION U/S 80P(2) OF THE ACT. THE AO , IN ALL THE CASES , HAD HELD THAT THE ASSESSE S ARE NOT PRIMARILY AGRICULTURAL CREDIT SOCIETY AND IS PRIMARILY ENGAGED IN THE BUSINESS OF BANKING ; THEREFORE, NOT ENTITLED TO THE BENEFIT OF SECTION 80P (2) OF THE ACT . 8 APPEALS (CO - OPERATIVE BANK) 3 4 ON FURTHER APPEAL, THE CIT (A) CONFIRMED THE ACTION OF THE AO IN DENYING THE BENEFIT OF DEDUCTION U/S 80P(2) OF THE ACT. THE CITA) FOLLOWED THE ORDER OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE S OF M /S KUNNAMANGALAM COOPERATIVE BANK VS ITO IN I TA NO. 156/COCH/20124 DATED 25.7 .2014 AND IN THE CASE OF M/S PINARAYI SERVICE COOPERATIVE BANK LTD VS ITO IN ITA NO . 123/COCH/20 12 DATED 31.7.2014 . . 5 AGGRIEVED , BY THE ORDER OF THE CIT(A), THESE APPEALS HAVE BEEN FILED BEFORE US. AT THE VERY OUTSET, THE LD DR SUBMITTED THAT THE ISSUE I N QUESTION IS SQUARELY COVERED BY THE ORDER OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASES M/S KUNNAMANGALAM COOPERATIVE BANK AND M/S PINARAYI SERVICE CO - OPERA TIVE BANK LTD (SUPRA) . THE LD AR FAIRLY ADMITTED THAT THE ISSUE IN QUESTION IS COVERED IN FAVOUR OF THE REVENUE . 6 WE HAVE HEARD T HE RIVAL SUBMISSIONS AND THE MATERIAL ON RECORD. THE ISSUE IN QUESTION IS SQUARELY COVERED BY THE ORDER S OF THE TRIBUNAL IN THE CASES OF M /S KUNNAMANGALAM CO - OPERATIVE BANK VS INCOME TAX OFFICE R IN ITA NO. 156/COCH/20124 DATED 25.7 .2014 FOR THE ASSESSMENT YEAR 2009 - 10 AND M/S PINARAYI SERVICE CO - OPERATIVE BANK LTD VS INCOME TAX OFFICER IN ITA NO. 123/COCH/2012 DATED 31.7.2014 FOR THE AY 2009 - 10. IN LIGHT OF CO - ORDINATE BENCH ORDERS OF THE TRIBUNAL REFERRED SUPRA, WE HOLD THAT THE C IT(A) IS JUSTIFIED IN 8 APPEALS (CO - OPERATIVE BANK) 4 CONFIRMING THE ASSESSMENT ORDERS DENYING THE BENEFIT OF DEDUCTION U/S 80P(2) OF THE ACT. IT IS ORDERED ACCORDINGLY. 7 IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE S ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF FEB 2016 . SD/ - SD/ - ( B P JAIN ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN: DATED 5 TH , FEB 2016 RAJ* COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT , 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN