The Kodungallur Town Co-op Bank Ltd, Kodungallur V. The ACIT, Trichur

ITA 407/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96784 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-11-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 15-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHANTAM BOSE
• Assessee Lawyers: NARAYANAN POTTI

Judgement Text

ITA NO 407 /C/20 1 5 1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI B P JAIN , A M & GEORGE GEORGE.K , J M ITA NO . 407 /COCH/201 5 . (ASST YEAR S 2010 - 11 ) THE KODUNGALLUR TOWN CO - OP BANK LTD. HEAD OFFICER KODUNGALLUR 680 664 VS THE ASST COMMR OF INCOME TA X CIRCLE 2(1), THRISSUR ( APPELLANT) (RESPONDENT) PAN NO. AAABT 2480 R ASSESSEE BY SHRI NARAYANAN POTTI REVENUE BY SHRI SHANTAM BOSE, CIT - DR DATE OF HEARING 3 RD NOV 2015 DATE OF PRONOUNCEMENT 4 TH NOV 2015 ORDER PER GEORGE GEORGE. K. J M: THIS APPEAL , AT THE INSTANT OF THE ASSESSEE, IS DIRECTED AGAINST CIT(A)S ORDER DATED 10.4.2015 THRISSUR . THE RELEVANT ASSESSMENT YEAR I S 2010 - 11 . 2 THE SOLITARY ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFI RMING THE DISALLOWANCE OF DEDUCTION MADE U/S 36(1)(VIIA) OF THE I T ACT, 1961 AMOUNTING TO RS. 6,72,53,402/ - . 3 THE BRIEFLY STATED FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSEE IS A COOPERATIVE BANK HAVING ITS HEAD OFFICE AT KODUNGALLUR. THE RETURN OF IN COME FOR THE ASSESSMENT YEAR UNDER CONSIDERATION HAS BEEN FILED ITA NO 407 /C/20 1 5 2 DECLARING NIL INCOME ON 14.10.2010. THE ASSESSMENT WAS TAKEN UP FOR SCRUTINY BY ISSUING NOTICE U/S 143(2) . THE AO WHILE COMPLETING THE ASSESSMENT U/S 143(3), DISALLOWED THE DEDUCTION CLAIMED BY THE ASSESSEE AMOUNTING TO RS. 6,72,53,402/ - AS 10% OF THE AGGREGATE AVERAGE ADVANCES MADE BY THE RURAL BRANCHES OF THE ASSESSEE BANK ON THE GROUND THAT THE ASSESSEE DOES NOT HAVE A RURAL BRANCH AS THE LOCATION OF THE BRANCHES ARE NOT RURAL WITHIN THE MEANING OF THE EXPLANATION OF RURAL BRANCH A SPECIFIED IN SECTION 36(1)(VIIA) OF THE ACT. WHILE DISALLOWING THE CLAIM, THE AO FOLLOWED THE ORDER OF THE COCHIN BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO . 08/COCH/2011 (ORDER DATED 24.8.2012). 3 AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE PREFERRED APPEAL TO THE FIRST APPELLATE AUTHORITY. THE CIT(A) CONFIRMED THE ACTION OF THE AO. WHILE CONFIRMING THE ACTION OF THE AO, THE CIT(A) FOLLOWED THE O RDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE AY 2007 - 08 (SUPRA) AND THE CASE OF IRI NJ ALAKUDA TOWN COOPERATIVE BANK LTD FOR THE AY 2010 - 11 IN ITA NO.200/COCH/2013 (ORDER D ATED 16.8.2013). 4 THE ASSESSEE BEING AGGRIEVED IS IN APPEAL BEFORE US. THE LD AR FAIRLY ADMITTED THAT THE ISSUE IN QUESTION IS COVERED IN FAVOUR OF THE REVENUE BY THE ORDERS OF THE TRIBUNAL REFERRED IN THE IMPUGNED ORDER OF THE CIT(A). THE LD DR PRESENT WAS DULY HEARD. ITA NO 407 /C/20 1 5 3 5 WE HAVE HEARD THE PARTIES AND CONSIDERED THE MATERIAL ON RECO RD. WE FIND THAT THE COCHIN BENCH OF THE TRIBUNAL DECIDED THE ISSUE AGAINST ASSESSEE WHILE CONSIDERING THE APPEAL OF THE ASSESSEE FOR THE AY 2007 - 08 IN ITA NO. 08/COCH/2011 VIDE ORDER DATED 24.8.2012 AND ALSO IN THE CASE OF IRINJALAKUDA TOWN COOPERATIV E BANK LTD FOR THE AY 2010 - 11 IN ITA NO.200/COCH/2013 (ORDER DATED 16.8.2013). THE FACTS FOR THE AY 2007 - 08 IN ASSESSEES OWN CASE AND THE CASE OF IRINJALAKUDA TOWN COOPERATIVE BANK LTD FOR THE AY 2010 - 11 (SUPRA) BEING IDENTICAL TO THE FACTS OF THE INSTA NT CASE, WE HOLD THAT THE CIT(A) IS JUSTIFIED IN CONFIRMING THE AOS ACTION IN MAKING THE DISALLOWANCE OF CLAIM OF DEDUCTION U/S 36(1)(VIIA) OF THE ACT . IT IS ORDERED ACCORDINGLY. 6 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONO UNCED IN THE OPEN COURT ON THIS 4 TH DAY OF NOV 2015 . SD/ - SD/ - ( B P JAIN ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN: DATED 4 TH NOV 2015 RAJ* COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT, 5 . DR 6 . GUARD FI LE BY ORDER ITA NO 407 /C/20 1 5 4 ASSISTANT REGISTRAR ITAT, COCHIN