The Chala Service Co-op Bank Ltd, Kannur V. The ITO, Kannur

ITA 271/COCH/2015

• Counselvise Citation: 27121914 RSA 2015
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-08-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 13-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Section: 142(1); 144; 139

Judgement Text

ITA NO. 275/COCH/2015 & OTHERS 1 IN THE INCOME TAX APPEL L A TE T R IBUNAL COCHIN BENCH , COCHIN BEFORE S/SH RI B P JAIN , A CCOUNTANT MEMBER ITA NO . 275/COCH/2015 ASST YEAR 2009 - 10 M/S KARIYAD SERVICE CO - OP BANK LTD KARIYAD SOUTH, THALASSERY KANNUR 673 316 PAN NO.AADAK0883F VS THE INCOME TAX OFFICER WARD NO.2, KANNUR ( APP LICANT ) (RESPONDENT) ITA NO. 276/COCH/2015 ASST YEAR 2007 - 08 M/S KOLAVALLUR SERVICE CO - OP BANK LTD KOLAVALLUR, CHERUPARAMBA KANNUR 67 0 693 PAN NO.AAHFK6245L VS THE INCOME TAX OFFICER WARD NO.2, KANNUR ( APP LICANT ) (RESPONDENT) ITA NO. 277/COCH/2015 ASST YEAR 2007 - 08 M/S PONNIAM SERVICE CO - OP BANK LTD PONNIAM, THALASSERY KANN UR 670 641 PAN NO. AAALP0078K VS THE INCOME TAX OFFICER WARD NO.2, KANNUR RANGE KANNUR ( APP LICANT ) (RESPONDENT) ITA NO. 278/COCH/2015 ASST YEAR 2007 - 08 M/S PA NOOR SERVICE CO - OP BANK LTD THALASSERY KANNUR 670 692 PAN NO.AAGFP9777R VS THE INCOME TAX OFFICER WARD NO.2, KANNUR ( APP LICANT ) (RESPONDENT) ITA NO. 275/COCH/2015 & OTHERS 2 ITA NO. 279/COCH/2015 ASST YEAR 2007 - 08 M/S VENGAD SERVICE CO - OP BANK LTD VENGAD , THALASSERY KANNUR 670 612 PAN NO.AAAAV5792M VS THE INCOME TAX OFFICER WARD NO.2, KANNUR ( APP LICANT ) (RESPONDENT) ASSESSEE BY MS DIVYA RAVINDRAN, ADVOCATE REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 26 TH AUG 2 015 DATE OF PRONOUNCEM ENT 26 TH AUG 2015 ITA NO. 271 & 272/COCH/2015 ASST YEAR 2007 - 08 & 08 - 09 M/S THE CHALA SERVICE CO - OP BANK LTD CHALA WEST THOTTADA PO KANNUR 670 007 PAN NOAAAAC2617E VS THE INCOME TAX OFFICER WARD NO.1, KANNUR ( APP LICANT ) (RESPONDENT) ASSES SEE BY ADJOURNMENT APPLICATION FILED REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 26 TH AUG 2015 DATE OF PRONOUNCEMENT 26 TH AUG 2015 ITA NO. 285 & 286/COCH/2015 ASST YEAR 2008 - 09 & 09 - 10 M/S THE CHEMANCHERY SERVICE CO - OP BANK LTD KOZH IKODE PAN NO AACAT2189A VS THE INCOME TAX OFFICER WARD NO.2(1) KOZHIKODE ( APP LICANT ) (RESPONDENT) ASSESSEE BY ADJOURNMENT APPLICATION FILED REVENUE BY SHRI K P GOPAKUMAR, SR DR ITA NO. 275/COCH/2015 & OTHERS 3 DATE OF HEARING 26 TH AUG 2015 DATE OF PRONOUNCEMENT 26 TH AU G 2015 ITA NO. 248/COCH/2015 ASST YEAR 2009 - 10 M/S THE UDMA SERVICE CO - OP BANK LTD KASARAGOD 671 319 PAN NO AAAAT3049B VS THE INCOME TAX OFFICER WARD NO.2 KASARAGOD ( APP LICANT ) (RESPONDENT) ASSESSEE BY ADJOURNMENT APPLICATION FILED REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 26 TH AUG 2015 DATE OF PRONOUNCEMENT 26 TH AUG 2015 ITA NO. 297/COCH/2015 ASST YEAR 2010 - 11 M/S NARIKKUNI SERVICE CO - OP BANK LTD PO NARIKKUNI KOZHIKODE 673 585 PAN NO AAAAN7161Q VS THE INCOME TAX OFF ICER WARD NO.2(3) KOZHIKODE ( APP LICANT ) (RESPONDENT) ASSESSEE BY ADJOURNMENT APPLICATION FILED REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 26 TH AUG 2015 DATE OF PRONOUNCEMENT 26 TH AUG 2015 ITA NO. 581/COCH/2014 ASST YEAR 2009 - 1 0 M/S MEPPAYUR SERVICE CO - OP BANK LTD MEPPAYUR POST KOZHIKODE 673 585 PAN NO AACAM3219J VS THE INCOME TAX OFFICER WARD NO.2(1) KOZHIKODE ( APP LICANT ) (RESPONDENT) ITA NO. 275/COCH/2015 & OTHERS 4 ASSESSEE BY NONE REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 26 TH A UG 2015 DATE OF PRONOUNCEMENT 26 TH AUG 2015 OR D ER PER B P JAIN, AM : THESE 12 APPEALS OF DIFFERENT ASSESSEES ARISE FROM DI FFERENT ORDERS OF THE LD CIT(A) AS PER THE DETAILS GIVEN BELOW: ITA NO. NAME OF THE ASSESSEE ASST YEAR CIT (A) AND HIS ORDER DATE 275/COCH/2015 M/S KARIYAD SER CO - OP BANK LTD 2009 - 10 CIT(A), KOZHIKODE 2.2.2015 276/COCH/2015 M/S KOLAVALLUR SER CO - OP BANK LTD 2007 - 08 CIT(A),KOZHIKODE, 2.2.2015 277/COCH/2015 M/S PONNIAM SER COOP BANK LTD 2007 - 08 CIT(A), KOZHIKODE, 2.2.2015 2 78/COCH/2015 M/S PANOOR SER COOP BANK LTD 2007 - 08 CIT(A), KOZHIKODE, 2.2.2015 279/COCH/2015 M/S VENGAD SER COOP BANK LTD 2007 - 08 CIT(A), KOZHIKODE, 2.2.2015 271 & 272/COCH/2015 CHALA SERVICE COOPERATIVE BANK LTD, KANNUR 2007 - 08 & 08 - 09 CIT(A) KOZHIKODE 2.2.2015 ITA NO.285 & 286/COCH/2015 M/S THE CHEMANCHERY SERVICE CO - OP BANK LTD 2008 - 09 & 09 - 10 CIT(A) KOZHIKODE 5.2.2015 ITA NO.248/COCH/20 15 M/S THE UDMA SERVICE CO - OP BANK LTD 2009 - 10 CIT(A),KOZHIKODE 2.2.2015 ITA NO. 297/COCH/2015 M/S NARIKK UNI SERVICE CO - OP BANK LTD 2010 - 11 CIT(A), KOZHIKODE 5.2.2015 ITA 581/COCH/2014 M/S MEPPAYUR SERVICE CO - OP BANK LTD 2009 - 10 CIT(A) KOZHIKODE 30.9.2014 ITA NO. 275/COCH/2015 & OTHERS 5 2 SINCE THE ISSUES IN ALL THE 12 APPEALS HEREIN ABOVE ARE IDENTICAL; THEREFORE, WE PROCEED TO DEC IDE ALL THE APPEALS BY THIS CONSOLIDATED ORDER. 3 FIRST OF ALL, WE WILL TAKE UP THE APPEAL IN ITA NO . 275/COCH/2015 AS UNDER: 4 THE ASSESSEE HAS RAISED AS MANY A S 12 GROUNDS OF APPEAL MAINLY HAVING TWO ISSUES; ONE REGARDING DEDUCTION U/S 80P OF THE ACT A ND ANOTHER AGAINST DISALLOWANCE U/S 40(A)(IA) OF THE ACT FOR NON DEDUCTION OF TAX ON THE AMOUNT OF INTEREST PAID TO NON - MEMBERS. 5 IN THE PRESENT CASE, THE ASSESSEE IS A COOPERATIVE BANK REGISTERED UNDER THE KERALA COOPERATIVE SOCIETIES ACT, 1969. SIN CE THE ASSESSEE HAD FAILED TO FILE RETURN OF IN COME FOR THE AY 2009 - 10 WITHIN THE TIME STIPULATED U/S 139 OR IN TERMS OF NOTICE U/S 142(1), THE AO COMPLETED THE ASSESSMENT U/S 144 OF THE ACT. WHILE COMPLETING THE ASSESSMENT, THE AO DISALLOWED THE CLAIM OF DEDUCTION U/S 80P BY INVOKING THE PROVISIONS OF SECTION 80A(5). 5.1 THE LD CIT(A), WITH REGARD TO DISALLOWANCE OF DEDUCTION U/S 80P OBSERVED THAT THE ISSUE IS COVERED BY THE DECISION OF THE ITAT, COCHIN BENCH IN THE CASE OF M/S KADACHIRA SERVICE COOP ERATIVE BANK LTD VS ITO REPORTED IN (2013) 153 TTJ 129 (COCHIN) AND THE ASSESSEE IS NOT EN TITLED TO DEDUCTION U/S 80P, IF RETURN OF ITA NO. 275/COCH/2015 & OTHERS 6 INCOME HAS NOT BEEN FILED WITHIN THE PRESCRIBED TIME. ACCORDINGLY, HE DISMISSED THE GROUNDS OF APPEAL OF THE ASSESSEE , S INCE THE FACTUAL MATRIX IN THE PRESENT CASE WAS THE SAME IN THE PRESENT CASE AS IN THE CASE REFERRED TO ABOVE IN THE CASE F M/S KADACHIRA SERVICE COOPERATIVE BANK LTD (SUPRA). 6 THE LD COUNSEL FOR THE ASSESSEE MS DIVYA RAVINDRAN , WHO ARGUED THAT THOUGH THE CASE IS COVERED AGAINST THE ASSESSEE; BUT THE DECISION IN THE CASE OF M/S KADACHIRA SERVICE COOPERATIVE BANK LTD (SUPRA) IS ALREADY PENDING WITH THE HONBLE KERALA HIGH COURT. HOWEVER, SHE ADMITTED THAT THERE IS NO STAY AGAINST THE DECISION OF THE I TAT COCHIN BENCH IN THE CASE OF M/S KADACHIRA SERVICE COOPERATIVE BANK LTD (SUPRA) . 6.1 THE LD DR ON THE OTHER HAND RELIED ON THE ORDER OF THE LD CIT(A). 7 I HAVE HEARD THE RIVAL CONTENTION S AND PERUSED THE FACTS OF THE CASE. THE ASSESSEE HAS NOT FILED THE RETURN OF INCOME WITHIN THE PRESCRIBED TIME IN THE INCOME TAX ACT IS NOT UNDER DISPUTE. THIS ISSUE HAS BEEN DECIDED BY THE ITAT COCHIN BENCH IN THE CASE OF M/S KADACHIRA SERVICE COOPERATIVE BANK LTD., AND THERE IS NO STAY AGAINST THE ORDER BY THE HON BLE KERALA HIGH COURT AND ACCORDINGLY, IN THE PRESENT FACTS AND CIRCUMSTANCES OF THE CASE, I HAVE NO OTHER ALTERNATIVE BUT TO FOLLOW THE DECISION OF THE ITAT COCHIN BENCH IN THE CASE OF M/S KADACHIRA SERVICE COOPERATIVE BANK LTD. (SUPRA) ON IDENTICAL ISS UE AND ITA NO. 275/COCH/2015 & OTHERS 7 ACCORDINGLY, I FIND NO INFIRMITY IN THE ORDER OF THE LD CIT(A), WHO HAS RIGHTLY REJECTED THE GROUND OF THE APPEAL ON ACCOUNT OF DEDUCTION CLAIMED U/S 80P OF THE ACT. THUS, THE GROUNDS RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 8 NEXT IS SUE IN THE APPEAL OF THE ASSESSEE IS WITH REGARD TO DISALLOWANCE U/S 40(A)(IA) OF THE ACT FOR NON DEDUCTION OF TAX ON THE AMOUNT OF INTEREST PAID TO NON MEMBERS. 9 THE LD CIT(A) FOLLOWED THE DECISION OF THE ITAT COCHIN BENCH IN THE CASE OF M/S HAMEED & COMPANY ( ENGINEERS ) PVT LTD VS ACIT IN ITA NO. 767/COCH/2013 DATED 17.10.2014 WHICH B ENCH HAS FOLLOWED THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS VECT O R SHIPPING SERVICES (P)LTD REPORTED IN 357 ITR 642 (ALL) , DID NOT INTERFER E WITH THE ORDER OF THE AO AND THE ADDITION WAS CONFIRM ED . 10 I HAVE HEARD THE RIVAL CONTENTION S AND PERUSED THE FACTS OF THE CASE. SINCE THE ISSUE IN THE PRESENT CASE IS COVERED BY THE DECISION OF THE ITAT COCHIN BENCH IN THE CASE OF M/S HAMEED & CO ( ENGIN EERS ) PVT LTD (SUPRA); THEREFORE, I HAVE NO OTHER ALTERNATIVE BUT TO FOLLOW THE DECISION OF THE ITAT COCHIN BENCH ON THIS ISSUE. HOWEVER, FOR THE SAKE OF CONVENIENCE, I REPRODUCE HEREIN BELOW THE OPERATIVE PORTION OF THE DECISION OF THE ITAT COCHIN BENCH : ITA NO. 275/COCH/2015 & OTHERS 8 NOW COMING TO THE DISMISSAL OF SPECIAL LEAVE PETITION BY THE SUPREME COURT, IT IS WELL SETTLED PRINCIPLES OF LAW THAT DISMISSAL OF SPECIAL LEAVE PETITION IS NOT THE LAW LAID DOWN BY THE APEX COURT. WHAT IS BINDING IS THE LAW LAID DOWN BY THE APEX COURT UNDER ARTICLE 141 OF THE CONSTITUTION OF INDIA. A MERE DISMISSAL BY ONE WORD, THE APEX COURT DOES NOT LAY DOWN ANY LAW. THEREFORE, THE CONTENTION OF THE ASSESSEE THAT HE AP E X COURT APPROVED THE JUDGMENT OF THE ALLAHANBAD HIGH COURT IN M/S VECTOR SHIPPING S ERVICE PVT LTD (SUPRA) IS NOT CORRECT. ACCORDINGLY, BY FOLLOWING THE JUDGMENTS RENDERED BY THE GUJARAT HIGH COURT IN SIKANDARKHAN N TUNVAR (SUPRA), CALCUTTA HIGH COURT IN CRESCENT EXPORTS SYNDICATE & ANOTHER (SUPRA), THE ORDERS OF THE LOWER AUTHORITIES ARE CONFIRMED. 11 FOLLOWING THE DECISION OF THE ITAT COCHIN BENCH IN THE CASE OF M/S HAMEED & CO (ENGINEERS) PVT LTD (SUPRA) WHERE THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF M/S VECTOR SHIPPING SERVICES PVT LTD (SUPA) HAS BEEN FOLLOWED , I CONFIRM THE ORDER OF THE LD CIT(A) AND DISMISS THE GROUND RAISED BY THE ASSESSEE ON THIS ISSUE. 12 IN REGARD TO ALL THE 12 GROUNDS RAISED BY THE ASSESSEE ON TWO ISSUES REFERRED TO ABOVE IN THE ABOVE APPEAL IN ITAT NO. 275/COCH/2015 ARE DISMISSED . 13 NOW I TAKE UP THE APPEAL IN ITAT NO. 276/COCH/2015. 14 THE ASSESSEE IN THE PRESENT CASE HAS RAISED 12 GROUNDS OF APPEAL WITH REGARD TO TWO ISSUES; ONE WITH REGARD TO DEDUCTION U/S 80P OF THE ACT AND ANOTHER WITH REGARD TO DISALLOWANCE U/S 40(A)(IA) OF T HE ACT FOR NON DEDUCTION OF AMOUNT OF INTEREST PAID TO NON MEMBERS. ITA NO. 275/COCH/2015 & OTHERS 9 15 WITH REGARD TO DEDUCTION U/S 80P OF THE ACT, THE LD CIT(A) HAS DISMISSED THE GROUNDS OF APPEAL OF THE ASSESSEE BY FOLLOWING THE DECISION OF THE ITAT, COCHIN BENCH IN THE CASE OF M/S KUNNAMANGALAL COOPERATIVE BANK VS ITO IN ITA NO. 156/COCH/2014 VIDE ORDER DATED 25.7.2014 FOR THE AY 2009 - 10 AND IN THE CASE OF M/S PINARAYI SERVICE COOPERATIVE BANK LTD VS ITO IN ITA NO. 123/COCH/2012 VIDE ORDER DATED 31.7.2014 FOR THE AY 2009 - 10 WHE REIN IT WAS HELD BY THE TRIBUNAL THAT THE ASSESSEE IS NOT ENTITLED TO DEDUCTION U/S 80P OF THE ACT IF THEY FAILED TO FULFILL THE PRIMARY OBJECT OR PRINCIPAL BUSINESS OF PROVIDING FINANCIAL ACCOMMODATION TO ITS MEMBERS FOR AGRICULTURAL PURPOSES OR FOR PUR POSES CONNECTED WITH AGRICULTURAL ACTIVITIES. 16 THE LD COUNSEL FOR THE ASSESSEE MS DIVYA RAVINDRAN ARGUED THAT THE MATTER IN THE CASE OF M/S KUNNAMANALAM COOPERATIVE BANK IS ALREADY PENDING WITH THE HONBLE KERALA HIGH COURT FOR THEIR DECISION; BUT ADM ITTED THAT THERE IS NO STAY OF THE DECISION OF THE ITAT COCHIN BENCH IN THE CASE OF M/S KUNNAMANALAM COOPERATIVE BANK AND M/S PINARAYI SERVICE COOPERATIVE BANK LTD (SUPRA). 16.1 THE LD DR ON THE OTHER HAND RELIED ON THE ORDER OF THE LD CIT(A). ITA NO. 275/COCH/2015 & OTHERS 10 17 I HAV E HEARD THE RIVAL CONTENTION AND PERUSED THE FACTS OF THE CASE. SINCE THE ISSUE IN THE PRESENT CASE IS COVERED BY THE DECISION OF THE ITAT COCHIN BENCH IN THE CASE OF M/S KUNNAMANALAM COOPERATIVE BANK AND M/S PINARAYI SERVICE COOPERATIVE BANK LTD (SUPRA) AGAINST WHICH THERE IS NO STAY OF THE ORDER OF THE HONBLE KERALA HIGH COURT; THEREFORE, I HAVE NO OTHER ALTERNATIVE BUT TO FOLLOW THE DECISION OF THE ITAT COCHIN BENCH IN THE CASE OF M/S KUNNAMANALAM COOPERATIVE BANK AND M/S PINARAYI SERVICE COOPERATIVE B ANK LTD (SUPRA). ACCORDINGLY, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD CIT(A), WHO HAS RIGHTLY DISMISSED THE GROUNDS OF THE ASSESSEE BEING IDENTICAL ISSUE IN THE PRESENT CASE AS IN THE CASE REFERRED TO HEREIN ABOVE. THUS, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THE ISSUE ARE DISMISSED. 18 NEXT ISSUE AGAINST THE DISALLOWANCE U/S 40(A)IA) OF THE ACT FOR NON DEDUCTION OF AMOUNT OF INTEREST PAID TO NON MEMBERS. 19 THIS ISSUE IS IDENTICAL TO THE ISSUE AS IN THE CASE OF M/S KARIYAD SERVI CE COOPERATIVE BANK LTD IN ITA NO. 275/COCHIN2015 DECIDED BY ME HEREIN ABOVE AND THEREFORE , MY DECISION HEREIN ABOVE IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL ON THE ISSUE ARE DISMISSED. 20 IN THE RESULT, THE APP EAL IN ITA NO. 276/COCH/2015 IS DISMISSED. ITA NO. 275/COCH/2015 & OTHERS 11 21 NOW I TAKE UP THE APPEAL IN ITA NO. 277/COCH/2015. 22 THE ASSESSEE HAS RAISED AS MANY AS 11 GROUNDS OF APPEAL AND ALL THAT REFERRED TO DEDUCTION U/S 80P OF THE ACT. 23 SINCE THE ISSUE IN THE PRESENT CASE IS IDENTICAL TO THE ISSUE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD., WHICH HAS BEEN DECIDED BY ME IN ITA NO.276/COCH/2015 HEREIN ABOVE AND ACCORDINGLY, MY DECISION IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. 276/COCH/2015 IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE THE PRESENT APPEAL IS DISMISSED. 24 IN THE RESULT, THE APPEAL IN ITA NO. 277/COCH/2015 IS DISMISSED. 25 NEXT I WILL TAKE THE APPEA L IN ITA NO. 278/COCH/2015 . 26 THE ASSESSEE IN THE PRESENT APPEAL HAS RAISED AS MANY AS 12 GROUNDS OF APPEAL ONE WITH REGARD TO THE DEDUCTION U/S 80P OF THE ACT AND ANOTHER WITH REGARD TO OVERDUE INTEREST AND DISALLOWANCE U/S 36(1)(VIIA) OF THE ACT. 27 WITH REGARD TO DEDUCTION U/S 80P OF THE ACT, THE ISSUE IS IDENTICAL TO THE ISSUE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. ITA NO. 275/COCH/2015 & OTHERS 12 276/COCH/2015 DECIDED BY ME HEREINABOVE AND ACCORDINGLY, MY DECISION REFERRED ABOVE IN THE CASE OF M/ S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. 276/COCH/2015 ON THE ISSUE IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THIS ISSUE IS DISMISSED. 28 NEXT ISSUE WITH REGARD TO OVERD UE INTEREST WHICH IS ALSO COVERED BY THE DECISION OF THIS TRIBUNAL IN THE CASE OF PAPPNISSERTY COOPERATIVE RURAL BANK LTD IN ITA NOS 711 714/COCH/2013 AGAINST THE ASSESSEE AND NOTHING MORE THAN BEEN BROUGHT ON RECORD AGAINST THE SAID DECISION BY THE LD COUNSEL FOR THE ASSESSEE. ACCORDINGLY, I HAVE NO OTHER ALTERNATIVE BUT TO FOLLOW THE DECISION OF TRIBUNAL. ACCORDINGLY, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) ON THIS ISSUE. THUS, THE GROUND RAISED BY THE ASSESSEE ON THIS ISSUE IS DISMISSED . 29 NEXT ISSUE WITH REGARD TO DISALLOWANCE OF 10% OF ADVANCES MADE BY RURAL BRANCHES OF THE ASSESSEE U/S 36(1)(VIIA) . THE AO DISALLOWED THE CLAIM OF THE ASSESSEE BY FOLLOWING THE DECISION OF THE HONBLE KERALA HIGH COURT IN THE CASE OF LORD KRISHNA BANK LTD VS CIT REPORTED IN 195 TAXMAN 57 AND THE CIT(A) ALSO CONFIRMED THE ACTION OF THE AO. 30 NO ARGUMENT HAS BEEN ADVANCED AGAINST THE DECISION OF THE LD CIT(A) BY THE LD COUNSEL FOR THE ASSESSEE AND ACCORDINGLY, I DO NOT FIND ANY INFIRMITY IN ITA NO. 275/COCH/2015 & OTHERS 13 THE ORDER OF THE CIT(A) ON T HIS ISSUE. ACCORDINGLY, THE ISSUE RAISED BY THE ASSESSEE IS DISMISSED. 31 IN THE RESULT, THE APPEAL IN ITA NO. 278/COCH/2015 IS DISMISSED. 32 NOW I WILL TAKE UP THE APPEAL IN ITA NO. 279/COCH/2015. 33 THE ASSESSEE IN THE PRESENT APP EAL HAS RAISED AS MANY AS 12 GROUNDS OF APPEAL WITH REGARD TO 4 ISSUES. 34 THE FIRST ISSUE IS WITH REGARD TO DEDUCTION U/S 80P OF THE ACT, WHICH IS IDENTICAL IN THE PRESENT CASE AS IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. 2 76/COCH/2015 DECIDED BY ME HEREINABOVE AND ACCORDINGLY, MY DECISION REFERRED ABOVE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. 276/COCH/2015 ON THE ISSUE IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND THE GROUNDS OF APPEA L RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 35 AS REGARDS TO OVERDUE INTEREST AND DISALLOWANCE U/S 36(1)(VIIA), BOTH THE ISSUES ARE IDENTICAL AS IN THE CASE OF M/S PANOOR SERVICE COOPERATIVE BANK LTD IN ITA NO. 278/COCH/2015 WHERE BOTH THE ISSUE S HAVE BEEN DISMISSED BY ME. FOLLOWING THE SAME DECISION, I DISMISS BOTH THE GROUNDS IN THE PRESENT APPEAL OF THE ASSESSEE. ITA NO. 275/COCH/2015 & OTHERS 14 36 AS REGARDS TO THE ISSUE U/S 40(A)(IA), FOR NON DEDUCTION OF TAX ON THE AMOUNT OF INTEREST PAID TO NON MEMBERS WHEREIN I HAVE AL READY DEALT WITH THE SAID ISSUE IN THE CASE OF M/S KARIYAD SERVICE COOPERATIVE BANK LTD IN ITA NO. 275/COCH/2015 HEREINABOVE AND THE ISSUE IN THE PRESENT CASE IS IDENTICAL AS IN THE CASE OF M/S KARIYAD SERVICE COOPERATIVE BANK (SUPRA) AND ACCORDINGLY, MY O RDER IN ITA NO. 275/COCH/2015 IN THE CASE OF M/S KARIYAD SERVICE COOPERATIVE BANK LTD IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 37 IN THE RESULT, THE APPEAL IN ITA NO. 279/COCH/2015 IS DISMISSED. 38 NOW I WILL TAKE UP THE APPEAL S IN ITA NO. 271 & 272 /COCH/2015. 39 NONE APPEARED FOR THE ASSESSEE. THE ASSESSEE HAS FILED AN APPLICATION FOR ADJOURNMENT BUT NO SUFFICIENT CAUSE IN THE APPLICATION WAS MENTIONED AND AL SO THE APPLICATION WAS NOT REPRESENTED BY ANY REPRESENTATIVE; THEREFORE, THE APPLICATION IS REJECTED AND WE PROCEED TO HEAR THE APPEAL EXPARTE. 40 IN THE PRESENT CASE THE ASSESSEE HAS RAISED AS MANY AS 7 GROUNDS OF APPEAL MAINLY ON4 ISSUES. THE FIRST ISS UE IS WITH REGARD TO DEDUCTION U/S 80P OF THE ACT WHICH HAS BEEN DECIDED BY ME IN ITA NO. 276/COCH/2016 IN THE CASE OF M/S ITA NO. 275/COCH/2015 & OTHERS 15 KOLAVALLUR SERVICE COOPERATIVE BANK LTD HEREIN ABOVE. SINCE THE ISSUE IN THE PRESENT CASE IS IDENTICAL TO THE CASE OF M/S KOLAVALL UR SERVICE COOPERATIVE BANK LTD IN ITA NO. 276/COCH/2015; THEREFORE, I DECIDE THE ISSUE AGAINST THE ASSESSEE BY FOLLOWING MY DECISION IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD (SUPRA) AND THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 41 NEXT ISSUE RELATES TO DISALLOWANCE U/S 40(A)(IA) OF THE ACT FOR NON DEDUCTION OF AMOUNT OF INTEREST PAID TO NON MEMBERS. 42 THIS ISSUE HAS BEEN DECIDED BY ME WHILE DECIDING THE APPEAL IN ITA NO. 275/COCH/2015 IN THE CASE O F M/S KARIYAD SERVICE COOPERATIVE BANK LTD AND THE ISSUE BEING IDENTICAL IN THE PRESENT CASE; THEREFORE, MY DECISION IN THE CASE OF M/S KARIYAD SERVICE COOPERATIVE BANK LTD I(SUPRA) IS IDENTICALLY APPLICABLE IN THE PRESENT CASE. ACCORDINGLY, THE GROUNDS RA ISED WITH REGARD TO DISALLOWANCE U/S 40(A)(IA) ARE DISMISSED. 43 NEXT TWO ISSUES ARE WITH REGARD TO DISALLOWANCE U / S 36(1)(VIIA) AND OVERDUE INTEREST WHICH HAVE BEEN DEALT WITH BY ME IN THE CASE OF M/S PANOOR SERVICE COOPERATIVE BANK LTD IN ITA NO. 278/C OCH/2015 AND THE ISSUE BEING IDENTICAL, MY ORDER IN THE CASE OF M/S PANOOR SERVICE COOPERATIVE BANK LTD IN ITA NO. 275/COCH/2015 & OTHERS 16 ITA NO. 278/COCH/2015 IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND THEREFORE, I DISMISS THE GROUNDS RAISED BY THE ASSESSEE ON THIS ISSUE. 44 THE ASSESSEE IN APPEAL 272/COCH/2015 HAS RAISED AS MANY AS 6 GROUNDS OF APPEAL ON 2 ISSUES WITH REGARD TO DEDUCTION U/S 80P AND DEDUCTION U/S 40(A)(IA) OF THE ACT. 45 AS REGARDS TO DEDUCTION U/S 80P, THE ISSUE IS IDENTICAL AS IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD DECIDED BY ME HEREINABOVE IN ITA NO. 276/COCH/2015 AND THEREFORE, MY DECISION IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 46 AS REGARDS TO DEDUCTION U/S 40(A)(IA), THE ISSUE HAS BEEN DECIDED WHILE DECIDING THE APPEAL IN THE CASE OF M/S KARIYAD SERVICE COOPERATIVE BANK LTD IN ITA NO. 275/COCH/2015 HEREIN ABOVE AND THE ISSUE BEING IDENTICAL IN THE PRESENT CASE; MY DECISION IN TH E CASE OF M/S KARIYAD SERVICE COOPERATIVE BANK LTD (SUPRA) IS IDENTICALLY APPLICABLE IN THE PRESENT CASE. ACCORDINGLY, THE GROUNDS RAISED WITH REGARD TO DISALLOWANCE U/S 40(A)(IA) ARE DISMISSED. 47 IN THE RESULT, THE APPEALS IN ITA NO. 271 & 272 /COCH/201 5 ARE DISMISSED. 48 NEXT APPEAL IN ITA NO. 285 AND 286/COCH/2015. ITA NO. 275/COCH/2015 & OTHERS 17 49 NONE APPEARED FOR THE ASSESSEE. THE ASSESSEE HAS FILED AN APPLICATION FOR ADJOURNMENT BUT NO SUFFICIENT CAUSE IN THE APPLICATION WAS MENTIONED AND ALSO THE APPLICATION WAS NOT REPRESENT ED BY ANY REPRESENTATIVE; THEREFORE, THE APPLICATION IS REJECTED AND WE PROCEED TO HEAR THE APPEAL EXPARTE. 50 THE ASSESSEE HAS RAISED AS MANY AS 4 GROUNDS OF APPEAL WITH REGARD TO SOLE ISSUE ON ACCOUNT OF DISALLOWANCE U/S 80P OF THE ACT. 51 THIS ISSUE HAS ALREADY BEEN DECIDED BY ME WHILE DECIDING THE APPEAL OF THE ASSESSEE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. 276/COCH/2015. THEREFORE, MY DECISION HEREIN ABOVE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD ( SUPRA) IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 52 IN THE RESULT, THE APPEALS IN ITA NOS. 285 AND 286/COCH/2015 ARE DISMISSED 53 NOW I WILL TAKE UP THE AP PEAL IN ITA NO. 248/COCH/2015. 54 NONE APPEARED FOR THE ASSESSEE. THE ASSESSEE HAS FILED AN APPLICATION FOR ADJOURNMENT BUT NO SUFFICIENT CAUSE IN THE APPLICATION WAS MENTIONED AND ALSO ITA NO. 275/COCH/2015 & OTHERS 18 THE APPLICATION WAS NOT REPRESENTED BY ANY REPRESENTATIVE; THEREFORE , THE APPLICATION IS REJECTED AND WE PROCEED TO HEAR THE APPEAL EXPARTE. 55 THE ASSESSEE HAS RAISED AS MANY AS 5 GROUNDS OF APPEAL WITH REGARD TO SOLE ISSUE ON ACCOUNT OF DISALLOWANCE U/S 80P OF THE ACT. 56 THIS ISSUE HAS ALREADY BEEN DECIDED BY ME WHIL E DECIDING THE APPEAL OF THE ASSESSEE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. 276/COCH/2015. THEREFORE, MY DECISION HEREIN ABOVE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD (SUPRA) IS IDENTICALLY APPLICABLE I N THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 57 IN THE RESULT, THE APPEAL IN ITA NO. 248/COCH/2015 IS DISMISSED 58 NOW I WILL TAKE UP THE APPEAL IN ITA NO. 297/COCH/2015. 59 NONE APPE ARED FOR THE ASSESSEE. THE ASSESSEE HAS FILED AN APPLICATION FOR ADJOURNMENT BUT NO SUFFICIENT CAUSE IN THE APPLICATION WAS MENTIONED AND ALSO THE APPLICATION WAS NOT REPRESENTED BY ANY REPRESENTATIVE; THEREFORE, THE APPLICATION IS REJECTED AND WE PROCEED TO HEAR THE APPEAL EXPARTE. ITA NO. 275/COCH/2015 & OTHERS 19 60 THE ASSESSEE HAS RAISED AS MANY AS 6 GROUNDS OF APPEAL WITH REGARD TO SOLE ISSUE ON ACCOUNT OF DISALLOWANCE U/S 80P OF THE ACT WHERE THE ASSESSEE DID NOT FILE THE RETURN OF INCOME IN TERMS OF SECTION 139 OR IN TERMS OF SEC 1 42(1) OF THE ACT AND THE AO PROCEEDED TO INITIATE BEST JUDGMENT ASSESSMENT U/S 144 OF THE ACT AS PER THE NOTICE ISSUED U/S 142(1) OF THE ACT. 61 THIS ISSUE HAS ALREADY BEEN DECIDED BY ME WHILE DECIDING THE APPEAL OF THE ASSESSEE IN THE CASE OF M/S KARI YAD SERVICE COOPERATIVE BANK LTD IN ITA NO. 275/COCH/2015 HEREIN ABOVE. THEREFORE, THE ISSUE BEING IDENTICAL IN THE PRESENT CASE; MY DECISION IN THE CASE OF M/S KARIYAD SERVICE COOPERATIVE BANK LTD (SUPRA) IS IDENTICALLY APPLICABLE IN THE PRESENT CASE. A CCORDINGLY, THE GROUNDS RAISED BY THE4 ASSESSEE ARE DISMISSED. 62 IN THE RESULT, THE APPEAL IN ITA NO. 2 97 /COCH/2015 IS DISMISSED . 63 NEXT APPEAL IN ITA NO. 581/COCH/2014 64 NONE APPEARED FOR THE ASSESSEE AND THERE IS NO ADJOURNMENT APPLICATION FILED IN SPITE OF VALID SERVICE OF NOTICE. THEREFORE, I PROCEED TO DECIDE THE APPEAL EXPARTE AFTER HEARING THE LD DR. ITA NO. 275/COCH/2015 & OTHERS 20 65 THE ASSESSEE HAS RAISED AS MANY AS 5 GROUNDS OF APPEAL WITH REGARD TO SOLE ISSUE ON ACCOUNT OF DISALLOWANCE U/S 80P OF THE ACT . 6 6 IDENTIC AL ISSUE HAS BEEN DEALT BY ME WHILE DECIDING THE APPEAL OF THE ASSESSEE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD IN ITA NO. 276/COCH/2015. THEREFORE, MY DECISION HEREIN ABOVE IN THE CASE OF M/S KOLAVALLUR SERVICE COOPERATIVE BANK LTD (S UPRA) IS IDENTICALLY APPLICABLE IN THE PRESENT CASE AND ACCORDINGLY, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ON THIS ISSUE ARE DISMISSED. 6 7 IN THE RESULT, THE APPEAL IN ITA NO. 581 /COCH/2015 IS DISMISSED. 68 TO SUM - UP, ALL THE APPEALS FILED BY T HE ASSESSEES ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 26 TH DAY OF AUG 2015 . SD/ - ( B P JAIN ) ACCOUNTANT MEMBER COC HIN: DATED 26 TH AUG 2015 RAJ* ITA NO. 275/COCH/2015 & OTHERS 21 COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT , 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN