M/s Kakinada Coop Town Bank Ltd, Kakinada V. The DCIT, Circle-1., Kakinada

ITA 177/VIZ/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7005 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 09-05-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBRATA SARKAR
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.177/VIZAG/2007 ASSESSMENT YEAR : 2002-03 KAKINADA CO-OP TOWN BANK LTD., KAKINADA DCIT, CIRCLE-1 KAKINADA (APPELLANT) VS. (RESPONDENT) PAN NO.AABFT 2435K ITA NO.193/VIZAG/2008 ASSESSMENT YEAR : 2006-07 DCIT, CIRCLE-1 KAKINADA KAKINADA CO-OP TOWN BANK LTD., KAKINADA (APPELLANT) VS. (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI SUBRATA SARKAR, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THESE CROSS APPEALS ARE PREFERRED BY THE ASSESSEE AS WELL AS THE REVENUE AGAINST THE RESPECTIVE ORDER OF THE CIT(A) ON A COMMON GROUND WITH REGARD TO THE DEDUCTION U/S 80P(2)(A)(I) OF THE I.T . ACT IN RESPECT OF INTEREST INCOME EARNED ON INVESTMENT OUT OF SURPLUS FUND OF THE ASSESSEES. 2. IN THIS REGARD, THE LD. COUNSEL FOR THE ASSESSEE S HAS SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO.460 TO 462/VIZAG/2005 IN WHICH T HE TRIBUNAL HAS ALLOWED THE EXEMPTION U/S 80P OF THE I.T. ACT ON THIS INTER EST INCOME, HAVING RELIED UPON THE JUDGEMENT OF THE APEX COURT IN THE CASE OF MEHSANA DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED VS. ITO (251 ITR 522) AND CIT VS. KARNATAKA STATE COOPERATIVE APEX BANK (251 ITR 194. COPIES O F VARIOUS ORDERS OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSM ENT YEAR 1996-97 TO 2005-06 ARE PLACED. 2 3. HAVING CAREFULLY EXAMINED THE ORDER OF THE TRIBU NAL WE FIND THAT THIS IMPUGNED ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEES. SINCE THE CONSISTENT VIEW HAS BEEN TAKEN BY THE TRIBUNAL IN E ARLIER YEARS THAT INTEREST INCOME GENERATED ON THE SHORT TERM DEPOSITS IS ELIG IBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE I.T. ACT IN THE ASSESSEES OWN CASE, WE FIND NO VALID REASON TO TAKE A DIFFERENT VIEW IN THIS CASE. ACCO RDINGLY, FOLLOWING THESE AFORESAID ORDERS OF THE TRIBUNAL, WE HOLD THAT ASSE SSEE IS ENTITLED FOR DEDUCTION U/S 80P(2)(A)(I) OF THE I.T. ACT IN RESPE CT OF INTEREST INCOME EARNED ON SHORT TERM DEPOSITS AND ALSO INTEREST ON F.DS. ACCORDINGLY, WE CONFIRM THE ORDER OF THE CIT(A) IN ITA NO.193 OF 2008 AND SET A SIDE THE ORDER OF THE CIT(A) IN THIS REGARD IN ITA NO.177 OF 2007 FOR ASS ESSMENT YEAR 2002-03 AND DIRECT THE A.O. TO ALLOW THE AFORESAID CLAIM OF DED UCTION. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED AND THAT OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 19-3-2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 19 TH MARCH, 2010 COPY TO 1 THE KAKINADA CO-OPERATIVE TOWN BANK LIMITED, D.NO .11-3-6, VETERINARY HOSPITAL ROAD, RAMARAO PET, KAKINADA-533 004 2 DCIT, CIRCLE-1, AAYAKAR BHAVAN, KAKINADA 3 THE CIT, RAJAHMUNDRY 4 THE CIT(A), RAJAHMUNDRY 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM