SL Puram Service Co-op Bank Ltd, Alappuzha V. The ITO, Alappuzha

ITA 652/COCH/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9737 (ITAT-COCHIN)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 15-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRITHUNJAYA SHARMA
• Assessee Lawyers: C A JOJO
• Keywords: Principle of natural justice; Application of stay
• Section: 143(3); 80(P); 80P; 250; 201; 154; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJARI, AM & SHRI GEORGE GEORGE K, JM ITA NO. 652 /COCH/201 9 : ASST.YEAR 2013 - 2014 & SA NO.11 4 /COCH/2019 : ASST.YEAR 2013 - 2014 M/S. S L PURAM SERVICE CO - OPERATIVE BANK LIMITED, NO.A - 64, S.L.PURAM PO ALAPPUZHA DISTRICT 688 523 PAN : AADAS1391L . VS. THE INCOME TAX OFFICER WARD 4 ALAPPUZHA. (APPELLANT / APPLICANT ) (RESPONDENT) APPELLANT BY : SRI. C.A.JOJO RESPONDENT BY : SRI.MRITHUNJAYA SHARMA, SR.DR DATE OF HEARING : 06.01.2020 DATE OF PRONOUNCEMENT : 0 7 .01.2020 O R D E R PER GEORGE GEORGE K , J M : THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) , DATED 30.0 9 .2019, PASSED U/S 154 R.W.S. 250 OF THE INCOME - TAX ACT. THE ASSESSEE HAS ALSO PREFERRED A STAY APPLICATION SEEKING TO STAY THE RECOVERY OF OUTSTANDING TAX ARREARS. THE RELEVANT ASSESSMENT YEAR IS 201 3 - 201 4 . 2. THE BRIEF FACTS OF THE CASE ARE AS FOLLOW: T HE ASSESSEE IS A CO - OPERATIVE SOCIETY REGISTERED UNDER THE KERALA CO - OPERATIVE SOCIETIES ACT , 1969. FOR THE ASSESSMENT YEAR 2013 - 2014, THE RETURN OF INCOME WAS FILED ON 08.01.2015 DECLARING INCOME OF RS.NIL, AFTER CLAIMING ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 2 DEDUCTION U/S 80P OF THE I.T.ACT. THE ASSESSING OFFICER PASSED ORDER U/S 143(3) OF THE I.T.ACT, DISALLOWING THE CLAIM OF DEDUCTION U/S 80P OF THE I.T.ACT. THE REASONING OF THE ASSESSING OFFICER TO DISALLOW THE CLAIM OF DEDUCTION U/S 80P(2) OF THE I.T.ACT WAS THAT THE ASSESSEE WAS DOING TH E BUSINESS OF BANKING, AND THEREFORE, IN VIEW OF INSERTION OF SECTION 80P(4) OF THE I.T.ACT WITH EFFECT FROM 01.04.2007, THE ASSESSEE WILL NOT BE ENTITLED TO THE DEDUCTION U/S 80P(2) OF THE I.T.ACT. THE ASSESSING OFFICER ALSO DISALLOWED THE CLAIM OF DEDUCT ION WITH REGARD TO INTEREST INCOME RECEIVED BY THE ASSESSEE ON INVESTMENTS MADE WITH DISTRICT CO - OPERATIVE BANKS. 3. AGGRIEVED BY THE ORDER OF ASSESSMENT DENYING THE CLAIM OF DEDUCTION U/S 80P(2) OF THE I.T.ACT, THE ASSESSEE PR EFERRED APPEAL TO THE FIRST APPELLATE AUTHORITY . THE CIT(A) ALLOWED THE APPEAL BY HOLDING THAT THE ASSESSEE WAS ELIGIBLE FOR DEDUCTION U/S 80P OF THE I.T.ACT. THE INTEREST INCOME RECEIVED FROM OTHER BANKS AND TREASURY ALSO WAS ALLOWED AS DEDUCTION U/S 80P(2)(A)(I) OF THE I.T.ACT. IN ALLOWING THE APPEAL OF THE ASSESSEE, THE CIT(A) FOLLOWED THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CHIRAKKAL SERVICE CO - OPERATIVE CO - OPERATIVE BANK LTD. V. CIT [(2016) 384 ITR 490 (KER.). 4. SUBSEQU ENTLY, THE CIT(A) ISSUED NOTICE U/S 154 OF THE I.T.ACT PROPOSING TO RECTIFY HIS ORDER PASSED, IN VIEW OF THE SUBSEQUENT JUDGMENT OF THE FULL BENCH OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF THE MAVILAYI SERVICE ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 3 CO - OPERATIVE BANK LTD. V. CIT [ITA NO.97/2016 ORDER DATED 19 TH MARCH, 2019]. THE ASSESSEE OBJECTED TO THE ISSUANCE OF NOTICES. HOWEVER, THE CIT(A) REJECTED THE OBJECTIONS RAISED BY THE ASSESSEE AND PASSED ORDER U/S 154 OF THE I.T.ACT, DISALLOWING THE CLAIM OF THE ASSESSEE U/S 80P(2) OF THE I.T.ACT. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL RAISING THE FOLLOWING GROUNDS: - A. THE COMMISSIONER (APPEALS) KOTTAYAM OUGHT TO HAVE CONSIDERED THAT THE ISSUE WHETHER THE ASSESSING OFFICER SHALL PROBE INTO THE ACTIVITIES OF A CO - OPERATIVE SOCIETY TO FIND OUT WHETHER IT IS ELIGIBLE FOR DEDUCTION U/S 80P OF THE INCOME TAX ACT 1961 OR WILL IT BE HIT BY SECTION 80P(4) IS A MATTER TO BE DECIDED BY THE HON'BLE SUPREME COURT IN THE APPEALS [SLP (CIVIL) DIARY NO. 2762 8/2019) FILED BY THE CO - OPERATIVE SOCIETIES IN KERALA, AGAINST THE REFERENCE ORDER DATED 19 - 03 - 2019 OF THE FULL BENCH OF HON'BLE HIGH COURT OF KERALA IN THE CASE MAVILAYI SERVICE CO - OPERATIVE BANK LTD., VS INCOME TAX OFFICER, KANNUR AND THAT THE APEX COURT HAS ISSUED NOTICE ON THE PRAYER FOR STAY OF THE ORDER OF HIGH COURT. B. THE COMMISSIONER (APPEALS) KOTTAYAM AS WELL AS THE ASSESSING OFFICER OUGHT TO HAVE APPRECIATED THAT EVEN IF THE APPELLANT IS NOT A PRIMARY AGRICULTURAL CREDIT CO - OPERATIVE SOCIETY THE APPELLANT IS NOT A CO - OPERATIVE BANK AND HENCE ELIGIBLE FOR DEDUCTION U/S 80P OF THE INCOME TAX ACT 1961 IN THE LIGHT OF THE CLARIFICATION NO.133/06/2006 - 07 DATED 19 - 05 - 2007 ISSUED BY CBDT, NEW DELHI, WHICH IS BINDING ON THE ASSESSING OFFICER. C. TH E VIEW OF THE COMMISSIONER (APPEALS) KOTTAYAM AS WELL AS THE ASSESSING OFFICER THAT PRIMARY AGRICULTURAL CREDIT CO - OPERATIVE SOCIETIES ONLY ARE ELIGIBLE FOR DEDUCTION U/S SECTION 80(P) IS DIAMETRICALLY OPPOSITE TO THE VIEWPOINTS EXPRESSED BY VARIOUS APPEL LATE AUTHORITIES ALL OVER THE COUNTRY IN THE DECISIONS MENTIONED BELOW, TO NAME A FEW. (A) HIGH COURT OF KARNATAKA IN BANGALORE COMMERCIAL TRANSPORT CREDIT SOCIETY LTD - ITA NO: 598/2013 DATED 27 - 06 - 2014 ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 4 (B) HIGH COURT OF GUJARAT - JAFARI MOMIN VIK AS CO - OP. CREDIT SOCIETY LTD. IN TAX APPEALS NO. 442 OF 2013, 443 OF 2013 AND 863 OF 2013 ON 15 - 01 - 2014 (C) HIGH COURT OF KARNATAKA - INCOME TAX OFFICER VS SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA BAGALKOT ON 5TH FEB 2014 (D) HIGH COURT OF BOMBAY AT GOA - QUEPEM URBAN CO - OPERATIVE CREDIT SOCIETY LTD. VS ASSISTANT COMMISSIONER OF I NCOME - TAX ON 17 - 04 - 2015 (E) MADRAS HIGH COURT - THE COMMISSIONER OF INCOME TAX VS NI C EMPLOYEES CO - OPERATIVE SOCIETY ON 10 AUGUST, 2016 (F) ITAT, PANAJI - ATHANI TALUKA PRIMARY TEACHERS CO - OPERATIVE CREDIT SOCIETY LTD. ITA NO. 06/PNJ/2014 ON 04 - 07 - 2014 (G) ITAT, POONA - JANKALYAN NAGRI SAHAKARI PAT SANSTHA LTD. REPORTED IN 24 TAXMANN.COM (PUNE TRIBUNAL) 127 (H) ITAT, AHAMADABAD - JAFARI MOMIN VIKAS CO - OP. CREDIT SOCIETY ON 31 OCTOBER, 2012 (I) ITAT, INDORE - BHEE THRIFT & CREDIT CO - OPERATIVE SOCIETY ON 6 AUGUST, 2012 (J) ITAT, BANGALORE - YESHWANTPUR CREDIT CO - OPERATIVE SOCIETY ON 11 APRIL, 2012 (K) ITAT, AHMEDABAD - SARVODAY CRED IT CUM CONSUMERS CO - OPERATIVE SOCIETY ON 3 MAY, 2013 ( L ) ITAT, PUNE - JAIN NAGRI SAHKARI PAT SANSTHA DEPARTMENT OF INCOME TAX ON 14 SEPTEMBER, 2012 (M) ITAT, PUNE - DHARASUR MARDINI NAGAR SAHAKARI ON 20 NOVEMBER, 2012 (N) ITAT, PUNE - VARDHMAN NA GARI SAHAKARI PATH SANSTA ON 22 NOVEMBER, 2012 ( O ) ITAT, DELHI - PALHAWAS PRIMARY AGRICULTURE CO - OP. SOCIETY LTD. PALHAWAS DISTT., I.T.A. NO.2368/DEL /2011 (P) ITAT, DELHI - DHARUHERA PRIMARY AGRICULTURE CO - ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 5 OP. SOCIETY - I.T.A.NO.2371/DEL/2011 (Q) IT AT, MUMBAI - THE INCOME TAX OFFICER, WARD - 20(2)(1), MUMBAI - ITA NO. 1820/MUM/2017 DATED 02 - 08 - 2018 D. WHEN THERE IS NO DEARTH OF DECISIONS OF VARIOUS HIGH COURTS AND ITATS IN INDIA IN WHICH DETAILED DISCUSSIONS WERE MADE AND CONCLUSION ARRIVED ON THE SUBJECT MATTER OF ELIGIBILITY FOR DEDUCTION U/S 80P, DISALLOWANCE OF CLAIM UNDER THE SAID SECTION MADE BY T HE ASSESSING OFFICER AND THE CI.T. (APPEALS) RELYING ON UNRELATED DECISIONS IS DENIAL OF NATURAL JUSTICE TO THE APPELLANT. E. THE APPELLANT PRAYS THAT THE GENERAL OUTLOOK IN THE DECISIONS OF VARIOUS HIGH COURTS AND ITATS ACROSS THE COUNTRY ON THE DISALLO WANCE OF CLAIM FOR DEDUCTION U/S 80(P), ADOPTED ON THE BASIS OF CBDT CLARIFICATION NO. 133/06/2006 - 07 DATED 19 - 05 - 2007 SHALL BE TAKEN INTO CONSIDERATION WHILE DISPOSING THIS APPEAL PETITION. F. THE APPELLANT PRAYS THAT THE DISALLOWANCE OF CLAIM FOR DEDUCTION U/S 80(P) MADE IN RESPECT OF INCOME FROM BANKING AND CREDIT BUSINESS WITH MEMBERS MAY BE DELETED. 6. THE LEARNED AR RELIED ON THE GROUNDS RAISED. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, STRONGLY SUPPORTED THE ORDERS OF THE I NCOME - TAX AUTHORITIES. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CHIRAKKAL SERVICE CO - OPERATIVE CO - OPERATIVE BANK LTD. V. CIT [(2016) 384 ITR 490 (KER.)] HAD HELD THAT W HEN A CERTIFICATE HAS BEEN ISSUED TO AN ASSESSEE BY THE REGISTRAR OF CO - OPERATIVE SOCIETIES CHARACTERIZING IT AS PRIMARY AGRICULTURAL CREDIT SOCIETY, NECESSARILY, THE DEDUCTION U/S 80P(2) OF THE I.T.ACT HAS TO BE GRANTED TO THE ASSESSEE. HOWEVER, THE FULL BENCH OF THE HONBLE KERALA HIGH COURT IN THE CASE OF THE MAVILAYI SERVICE CO - OPERATIVE BANK LTD. V. CIT ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 6 (SUPRA) HAD REVERSED THE ABOVE FINDINGS OF THE HONBLE KERALA HIGH COURT IN THE CASE OF CHIRAKKAL SERVICE CO - OPERATIVE CO - OPERATIVE BANK LTD. V. CIT (S UPRA) . THE LARGER BENCH OF THE HONBLE KERALA HIGH COURT IN THE CASE OF THE MAVILAYI SERVICE CO - OPERATIVE BANK LTD. V. CIT (SUPRA) HELD THAT THE ASSESSING OFFICER HAS TO CONDUCT AN INQUIRY INTO THE FACTUAL SITUATION AS TO THE ACTIVITIES OF THE ASSESSEE SOC IETY TO DETERMINE THE ELIGIBILITY OF DEDUCTION U/S 80P OF THE I.T.ACT. IT WAS HELD BY THE HONBLE HIGH COURT THAT THE ASSESSING OFFICER IS NOT BOUND BY THE REGISTRATION CERTIFICATE ISSUED BY THE REGISTRAR OF KERALA CO - OPERATIVE SOCIETY CLASSIFYING THE ASSE SSEE - SOCIETY AS A CO - OPERATIVE SOCIETY. THE HONBLE HIGH COURT HELD THAT EACH ASSESSMENT YEAR IS SEPARATE AND ELIGIBILITY SHALL BE VERIFIED BY THE ASSESSING OFFICER FOR EACH OF THE ASSESSMENT YEARS. THE FINDING OF THE LARGER BENCH OF THE HONBLE HIGH COURT READS AS FOLLOWS: - 33. IN VIEW OF THE LAW LAID DOWN BY THE APEX COURT IN CITIZEN CO - OPERATIVE SOCIETY [397 ITR 1] IT CANNOT BE CONTENDED THAT, WHILE CONSIDERING THE CLAIM MADE BY AN ASSESSEE SOCIETY FOR DEDUCTION UNDER SECTION 80P OF THE IT ACT, AFTER T HE INTRODUCTION OF SUB - SECTION (4) THEREOF, THE ASSESSING OFFICER HAS TO EXTEND THE BENEFITS AVAILABLE, MERELY LOOKING AT THE CLASS OF THE SOCIETY AS PER THE CERTIFICATE OF REGISTRATION ISSUED UNDER THE CENTRAL OR STATE CO - OPERATIVE SOCIETIES ACT AND THE R ULES MADE THEREUNDER. ON SUCH A CLAIM FOR DEDUCTION UNDER SECTION 80P OF THE IT ACT, THE ASSESSING OFFICER HAS TO CONDUCT AN ENQUIRY INTO THE FACTUAL SITUATION AS TO THE ACTIVITIES OF THE ASSESSEE SOCIETY AND ARRIVE AT A CONCLUSION WHETHER BENEFITS CAN BE EXTENDED OR NOT IN THE LIGHT OF THE PROVISIONS UNDER SUB - SECTION (4) OF SECTION 80P. 33. IN CHIRAKKAL [384 ITR 490] THE DIVISION BENCH HELD THAT THE APPELLANT SOCIETIES HAVING BEEN CLASSIFIED AS PRIMARY AGRICULTURAL CREDIT SOCIETIES BY THE COMPETENT AUTH ORITY UNDER THE KCS ACT, IT HAS NECESSARILY TO BE HELD THAT THE PRINCIPAL OBJECT OF SUCH SOCIETIES IS TO UNDERTAKE ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 7 AGRICULTURAL CREDIT ACTIVITIES AND TO PROVIDE LOANS AND ADVANCES FOR AGRICULTURAL PURPOSES, THE RATE OF INTEREST ON SUCH LOANS AND ADVANCES T O BE AT THE RATE TO BE FIXED BY THE REGISTRAR OF CO - OPERATIVE SOCIETIES UNDER THE KCS ACT AND HAVING ITS AREA OF OPERATION CONFINED TO A VILLAGE, PANCHAYAT OR A MUNICIPALITY AND AS SUCH, THEY ARE ENTITLED FOR THE BENEFIT OF SUB - SECTION (4) OF SECTION 80P O F THE IT ACT TO EASE THEMSELVES OUT FROM THE COVERAGE OF SECTION 80P AND THAT, THE AUTHORITIES UNDER THE IT ACT CANNOT PROBE INTO ANY ISSUES OR SUCH MATTERS RELATING TO SUCH SOCIETIES AND THAT, PRIMARY AGRICULTURAL CREDIT SOCIETIES REGISTERED AS SUCH UNDER THE KCS ACT AND CLASSIFIED SO, UNDER THE ACT, INCLUDING THE APPELLANTS ARE ENTITLED TO SUCH EXEMPTION. 34. IN CHIRAKKAL [384 ITR 490] THE DIVISION BENCH EXPRESSED A DIVERGENT OPINION, WITHOUT NOTICING THE LAW LAID DOWN IN ANTONY PATTUKULANGARA [2012 (3) KHC 726] AND PERINTHALMANNA [363 ITR 268]. MOREOVER, THE LAW LAID DOWN BY THE DIVISION BENCH IN CHIRAKKAL [384 ITR 490] IS NOT GOOD LAW, SINCE, IN VIEW OF THE LAW LAID DOWN BY THE APEX COURT IN CITIZEN CO - OPERATIVE SOCIETY [397 ITR 1], ON A CLAIM FOR DEDU CTION UNDER SECTION 80P OF THE INCOME TAX ACT, BY REASON OF SUB - SECTION (4) THEREOF, THE ASSESSING OFFICER HAS TO CONDUCT AN ENQUIRY INTO THE FACTUAL SITUATION AS TO THE ACTIVITIES OF THE ASSESSEE SOCIETY AND ARRIVE AT A CONCLUSION WHETHER BENEFITS CAN BE EXTENDED OR NOT IN THE LIGHT OF THE PROVISIONS UNDER SUB - SECTION (4) OF SECTION 80P OF THE IT ACT. IN VIEW OF THE LAW LAID DOWN BY THE APEX COURT IN CITIZEN CO - OPERATIVE SOCIETY [397 ITR 1] THE LAW LAID DOWN BY THE DIVISION BENCH PERINTHALMANNA [363 ITR 26 8] HAS TO BE AFFIRMED AND WE DO SO. 35. IN VIEW OF THE LAW LAID DOWN BY THE APEX COURT IN ACE MULTI AXES SYSTEMS CASE (SUPRA), SINCE EACH ASSESSMENT YEAR IS A SEPARATE UNIT, THE INTENTION OF THE LEGISLATURE IS IN NO MANNER DEFEATED BY NOT ALLOWING DEDUC TION UNDER SECTION 80P OF THE IT ACT, BY REASON OF SUB - SECTION (4) THEREOF, IF THE ASSESSEE SOCIETY CEASES TO BE THE SPECIFIED CLASS OF SOCIETIES FOR WHICH THE DEDUCTION IS PROVIDED, EVEN IF IT WAS ELIGIBLE IN THE INITIAL YEARS. 7.1 THE CIT(A) H AD INITIALLY ALLOWED THE APPEAL OF THE ASSESSEE AND GRANTED DEDUCTION U/S 80P(2) OF THE I.T.ACT. SUBSEQUENTLY, THE CIT(A) PASSED ORDER U/S 154 OF THE I.T.ACT, WHEREIN THE CLAIM OF DEDUCTION U/S 80P OF THE I.T.ACT WAS ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 8 DENIED, BY RELYING ON THE JUDGMENT OF THE LARGER BENCH OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF THE MAVILAYI SERVICE CO - OPERATIVE BANK LTD. V. CIT (SUPRA). THE CIT(A) OUGHT NOT TO HAVE REJECTED THE CLAIM OF DEDUCTION U/S 80P(2) OF THE I.T.ACT WITHOUT EXAMINING THE ACTIVITIES OF THE ASSESSEE - SOCIETY. THE FULL BENCH OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF THE MAVILAYI SERVICE CO - OPERATIVE BANK LTD. V. CIT (SUPRA) HAD HELD THAT THE A.O. HAS TO CONDUCT AN INQUIRY INTO THE FACTUAL SITUATION AS TO THE ACTIVITIES OF THE ASSE SSEE SOCIETY TO DETERMINE THE ELIGIBILITY OF DEDUCTION U/S 80P OF THE I.T.ACT. IN VIEW OF THE DICTUM LAID DOWN BY THE FULL BENCH OF THE HONBLE JURISDICTIONAL HIGH COURT (SUPRA), WE RESTORE THE ISSUE OF DEDUCTION U/S 80P(2) TO THE FILES OF THE ASSESSING OF FICER. THE ASSESSING OFFICER SHALL EXAMINE THE ACTIVITIES OF THE ASSESSEE AND DETERMINE WHETHER THE ACTIVITIES ARE IN COMPLIANCE WITH THE ACTIVITIES OF A CO - OPERATIVE SOCIETY FUNCTIONING UNDER THE KERALA CO - OPERATIVE SOCIETIES ACT, 1969 AND ACCORDINGLY GRA NT DEDUCTION U/S 80P(2) OF THE I.T.ACT. 7.2 AS REGARDS THE INTEREST ON THE INVESTMENTS WITH CO - OPERATIVE BANKS AND OTHER BANKS, THE CO - ORDINATE BENCH ORDER OF THE TRIBUNAL IN THE CASE OF KIZHATHADIYOOR SERVICE CO - OPERATIVE BANK LIMITED IN ITA NO.525/COCH/ 2014 (ORDER DATED 20.07.2016), HAD HELD THAT INTEREST INCOME EARNED FROM INVESTMENTS WITH TREASURIES AND BANKS IS PART OF BANKING ACTIVITY OF THE ASSESSEE, AND THEREFORE, THE SAID INTEREST INCOME WAS ELIGIBLE TO BE ASSESSED AS `INCOME FROM BUSINESS INSTEA D OF `INCOME FROM OTHER SOURCES. HOWEVER, AS REGARDS ITA NO. 652 / COCH /201 9. SA NO.11 4 /COCH/2019. M/S. SL PURAM SERVICE CO - OP BANK LTD. 9 THE GRANT OF DEDUCTION U/S 80P OF THE I.T.ACT ON SUCH INTEREST INCOME, THE ASSESSING OFFICER SHALL FOLLOW THE LAW LAID DOWN BY THE LARGER BENCH OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF T HE MAVILAYI SERVICE CO - OPERATIVE BANK LTD. V. CIT (SUPRA) AND EXAMINE THE ACTIVITIES OF THE ASSESSEE - SOCIETY BEFORE GRANTING DEDUCTION U/S 80P OF THE I.T.ACT ON SUCH INTEREST INCOME. IT IS ORDERED ACCORDINGLY. 8. SINCE WE HAVE DISPOSED OF THE APPEAL FILED BY THE ASSESSEE, THE STAY APPLICATION FILED BY THE ASSESSEE BECOME S INFRUCTUOUS AND THE SAME IS DISMISSED AS SUCH. 9 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AND THE STAY APPLICATION IS DISMISSED. ORDER PRONOUNCED ON THIS 0 7 TH DAY OF JANUARY, 2020 . SD/ - SD/ - ( CHANDRA POOJARI ) ( GEORGE GEORGE K. ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN ; DATED : 0 7 TH JANUARY, 2020 . DEV A DAS G * COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (A) , KOTTAYAM. 4. THE PR.CIT , KOTTAYAM . 5. DR, ITAT, COCHIN 6. GUARD FILE.