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

ITA 563/COCH/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96767 (ITAT-COCHIN)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-10-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 23-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Section: 260A

Judgement Text

ITA NO 561 TO 563 /C/201 4 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. 561 TO 563/COCH/2014 (ASST YEAR S 2007 - 08,2008 - 09 & 2010 - 11 ) M/S MAYYIL SERVICE COOP BANK LTD MAYYIL KANNUR VS THE INCOME TAX OFFICER W ARD 4 KANNUR 670 006 ( APPELLANT) (RESPONDENT) PAN NO. AACAT3967E ASSESSEE BY SHRI ARUN RAJ. S REVENUE BY SH K P GOPAKUMAR, SR DR DATE OF HEARING 30 TH OCT 2015 DATE OF PRONOUNCEMENT 2 ND NOV 2015 ORDER PER GEORGE GEORGE. K. J M: THESE T HREE APPEALS, AT THE INSTANCE OF THE ASSESSEE, ARE DIRECTED AGAINST THE CONSOLIDATED ORDER OF HE CIT(A) DATED 30.9.2014. THE RELEVANT ASSESSMENT YEARS ARE 2007 - 08 , 2008 - 09 & 2010 - 11 . 2 THE ASSESSEE, FOR THE THREE ASSESSMENT YEARS, HAS RAISED IDENTIC AL 9 GROUNDS OF APPEAL. GROUND NOS 1 & 9 ARE GENERAL IN NATURE AND NO SPECIFIC ADJUDICATION IS REQUIRED AND HENCE THE SAME ARE REJECTED. GROUND NO. 2, 4, 6 & 8 RELATE TO DENIAL OF BENEFIT U/S 80P(2)(I)(A) OF THE ACT. ITA NO 561 TO 563 /C/201 4 2 3 BRIEFLY STATED FACTS OF THE CASE A RE AS FOLLOWS: THE ASSESSEE IS A COOPERATIVE SOCIETY MAINLY ENGAGED IN BANKING BUSINESS. WHILE COM PLETING THE SCRUTINY ASSESSMENTS FOR THE AYS 2007 - 08, 2008 - 09 AND 2010 - 1, THE AO DENIED THE BENEFIT OF DEDUCTI ON U/S 80P OF THE I T ACT, 1961 . THE REASONING O F THE AO FOR DENYING THE BENEFIT OF SECTION 80P DEDUCTION WAS THAT THE ASSESSEE IS A COOPERATIVE BANK ENGAGED IN THE BUSINESS OF BANKING AND IN VIEW OF INSERTION OF SUB.SEC (4) TO SEC. 80P W.E.F 1.4.2007 COOPERATIVE BANKS WERE NOT ENTITLED TO GET THE BENE FIT OF DEDUCTION U/S 80P(2)(I)(A) OF THE I T ACT. 4 AGGRIEVED BY THE DENIAL OF DEDUCTION U/S 80P, THE ASSESSEE PREFERRED APPEALS BEFORE THE FIRST APPELLATE AUTHORITY. THE CIT(A) CONFIRMED THE ASSESSMENT ORDERS FOR THE RESPECTIVE ASSESSMENT YEARS. THE C IT(A) FOLLOWED VARIOUS ORDERS OF THE COCHIN BENCH OF THE TRIBUNAL IN THE CASE OF M/S KUNNAMANGALAM COOPERATIVE BANK VS ITO AND IN THE CASE OF M/S PINARAYI SERVICE COOPERATIVE BANK LTD VS ITO AND DENIED THE BENEFIT OF DEDUCTION U/S 80P OF THE ACT. THE RELEVANT FINDINGS OF THE CIT(A) READS AS UNDER: 5 THE FIRST COMMON GROUND OF APPEAL IS AGAINST DISALLOWANCE OF DEDUCTION CLAIMED U/S 80P OF THE ACT. I HAVE CONSIDERED THE SUBMISSION OF THE LD COUNSEL. THE ISSUE RAISED BY THE APPELLANT WITH REGARD TO DIS ALLOWANCE OF DEDUCTION U/S 80P OF THE ACT HAS BEEN CONSIDERED BY THE HONBLE ITAT, COCHIN BENCH IN THE CASES OF M/S KUNNAMANGALAM CO - OPERATIVE BANK VS INCOME TAX OFFICER, WARD 2(3) CALICUT IN ITA NO. 156/COCH/20124 DATED 25.7.2014 FOR THE ASSESSMENT YEAR 2 009 - 10 AND M/S PINARAYI SERVICE CO - OPERATIVE BANK LTD VS INCOME TAX OFFICER, WARD 2, KANNUR IN ITA NO. 123/COCH/2012 DATED 31.7.2014 FOR THE AY 2009 - 10. RESPECTFULLY FOLLOWING THE SAID ORDER, I DISMISS THIS GROUND OF APPEAL OF THE APPELLANT IN THESE CASES ALSO AS THE FACTUAL MATRIX IS SAME IN ALL THE CASES. ITA NO 561 TO 563 /C/201 4 3 5 THE ASSESSEE BEING AGGRIEVED IS IN APPEAL BEFORE US ON THIS ISSUE. THE LD DR, AT THE VERY OUTSET, SUBMITTED THAT THE ISSUE IN QUESTION IS SQUARELY COVERED BY THE VARIOUS ORDERS OF THE TRIBUNAL REFERR ED IN THE IMPUGNED CIT(A)S ORDER. THE LD AR OF THE ASSESSEE SUBMITTED THAT THE HONBLE KARNATAKA HIGH COURT IN THE RECENT JUDGMENT IN THE CASE OF LAXMI CREDIT SOUHARD SAHAKARI LTD (COPY OF GIST OF THE JUDGMENT WITHOUT ANY CITATION WAS ON RECORD) HAS HEL D THAT DETERMINATION WHETHER IT IS A CO - OPERATIVE BANK OR CO - OPERATIVE SOCIETY RESTS WITH THE RBI CERTIFICATION AND IN THE ABSENCE OF RBI CERTIFICATE, THE ASSESSEE SHOULD BE HELD TO BE A COOPERATIVE SOCIETY, ENTITLED TO GET THE BENEFIT OF SECTION 80P OF THE I T ACT. 6 WE HAVE HEARD T HE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE CIT(A) HAS FOLLOWED THE VARIOUS ORDERS OF THE COCHIN BENCH OF THE TRIBUNAL IN THE CASES OF M/S KUNNAMANGALAM CO - OPERATIVE BANK VS INCOME TAX OFFICER, WARD 2(3) C ALICUT 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, WARD 2, KANNUR IN ITA NO. 123/COCH/2012 DATED 31.7.2014 FOR THE AY 2009 - 10. SINCE THE COCHIN BENCH OF THE TRIBUNAL HAS DECIDED THE ISSUE AGAINST THE ASSESSEE ON IDENTICAL SET OF FACTS, WE DEEM IT APPROPRIATE TO FOLLOW THE COORDINATE BENCH ORDER, FOR THE SAKE OF CONSISTENCY, WHICH IS SUBJECT MATTER OF APPEAL U/S 260A BEFORE THE HONBLE JURISDICTIONAL HIGH COUR T. THEREFORE, WE UPHOLD THE ORDER OF THE CIT(A) ON THIS ISSUE. ITA NO 561 TO 563 /C/201 4 4 7 AS REGARDS THE GROUND NOS 5 & 7, NO SPECIFIC ARGUMENTS WERE RAISED BY THE LD COUNSEL FOR THE ASSESSEE IN THE COURSE OF HEARING OF THESE APPEALS AND HENCE, THESE GROUNDS ARE ALSO REJECTED. 8 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 ND DAY OF NOV 2015 . SD/ - SD/ - ( B P JAIN ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN: DATED 2 ND N OV 2015 RAJ* COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT, 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN