DCIt, Kannur V. M/s The Kannur Dist.Co-op Bank, Kannur

ITA 432/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65015 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 19-01-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 08-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T R PRASANNAKUMARI

Judgement Text

1 ITA NO.432/COCH/2010 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI SANJAY AROR A (AM) I.T.A. NO. 432/COCH/2010 (ASSESSMENT YEARS 2005-05 & 2007-08) THE DY.C.I.T., CIR.1 VS THE KANNUR DIST.CO-OP BANK L TD KANNUR KANNUR PAN : AABFT6295R (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. T.R. PRASANNAKUMARI RESPONDENT BY : SHRI GOPI.K DATE OF HEARING : 19-01-2012 DATE OF PRONOUNCEMENT : 02-02-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX(A) FOR THE ASSESSMENT YEAR 2005-06. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS GRANT OF DEDUCTION U/S 80P(2)(A)(I) IN RESPECT OF INTEREST INCOME FROM THE FUNDS INVEST ED IN KERALA STATE INFRASTRUCTURE FUND BOARD (HEREINAFTER REFERRED TO AS KSIFB). 3. DURING THE COURSE OF HEARING IT WAS BROUGHT TO T HE NOTICE OF THE BENCH THAT FOR THE ASSESSMENT YEARS 2003-04 AND 2004-05 THIS TR IBUNAL HAD AN OCCASION TO CONSIDER AN IDENTICAL ISSUE. THIS TRIBUNAL, AFTER CONSIDERING THE DEPOSITS MADE BY 2 ITA NO.432/COCH/2010 THE ASSESSEE BANK IN KSIFB, FOUND THAT THE INTEREST A CCRUED THEREON IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. THE LD.DR V ERY FAIRLY SUBMITTED THAT THE HIGH COURT, ON APPEAL BY THE REVENUE, CONFIRMED THE ORDER OF THIS TRIBUNAL. ACCORDING TO THE LD. DR, THE SLP FILED BY THE DEPAR TMENT IS PENDING BEFORE THE SUPREME COURT. WE HEARD, SHRI GOPI K, THE LD.COUNSE L FOR THE ASSESSEE ALSO. 4. IT IS NOT IN DISPUTE THAT THIS TRIBUNAL EXAMINED THE ISSUE ELABORATELY IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2003-04 AND 2004-05 AND FOUND THAT THE INTEREST EARNED BY THE ASSESSEE ON THE DEP OSIT MADE WITH KSIFB QUALIFIES FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. IT APPE ARS THAT THE APPEAL FILED BY THE REVENUE BEFORE THE HIGH COURT IS ALSO DISMISSED CON FIRMING THE ORDER OF THE TRIBUNAL. THEREFORE, AS ON TODAY, THE JURISDICTION AL HIGH COURT UPHELD THE ORDER OF THE INCOME-TAX APPELLATE TRIBUNAL HOLDING THAT TH E ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) IN RESPECT OF INTEREST A CCRUED ON INVESTMENT IN KSIFB. IT IS NOT THE CASE OF THE REVENUE THAT THE SUPREME COURT HAS PASSED ANY INTERIM ORDER. IN SUCH CIRCUMSTANCES, THIS TRIBUNAL FINDS NO INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY, WHICH FOLLOWED THE ORDER OF THIS T RIBUNAL FOR THE ASSESSMENT YEARS 2003-04 AND 2004-05 WHICH WAS CONFIRMED BY THE HIGH COURT. ACCORDINGLY THE ORDER OF COMMISSIONER OF INCOME-TAX(A) IS CONFIR MED. T 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 02 ND DAY OF FEBRUARY, 2012. SD/- SD/- (SANJAY ARORA) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 02 ND FEBRUARY, 2012 PK/- 3 ITA NO.432/COCH/2010 COPY TO: 1. THE DY.C.I.T., KANNUR 2. THE KANNUR DIST CO-OP BANK, KANNUR 3. THE COMMISSIONER OF INCOME-TAX(A)-II, KOCHI 4. THE COMMISSIONER OF INCOME-TAX, KANNUR 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, C OCHIN BENCH