The Ernakulam Dist.Co-op Bank ltd, Cochin V. DCIT, Ernakulam

ITA 689/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64866 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-09-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 20-12-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SREENIVASU KOLLIPAKA
• Assessee Lawyers: K GOPI

Judgement Text

1 ITA NO.689/COCH/2010 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.T.A NO. 689/COCH/2010 (ASSESSMENT YEAR 2007-08) THE ERNAKULAM DISTRICT CO-OPERATIVE VS THE DY.CIT, R ANGE-2 BANK LTD, C/O VARMA & VARMA, CAS ERNAKULAM COCHIN-16 PAN : AABAT4386L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K GOPI RESPONDENT BY : SHRI SREENIVASU KOLLIPAKA DATE OF HEARING : 18-09-2012 DATE OF PRONOUNCEMENT : 12-10-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE TAXPAYER IS DIRECTED AGAINST TH E ORDER OF COMMISSIONER OF INCOME-TAX(A)-II, KOCHI DATED 14-09-2010 AND PERTAI NS TO ASSESSMENT YEAR 2007-08. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE OF CLAIM OF THE TAXPAYER FOR ADDITIONAL DEDUCTION U/S 36(1)(VIIA) O F THE INCOME-TAX ACT ON THE GROUND THAT THE TAXPAYER IS A RURAL BRANCH. 2 ITA NO.689/COCH/2010 3. WHEN THE APPEAL WAS TAKEN UP FOR HEARING SHRI K GOP I, THE LD.REPRESENTATIVE FOR THE TAXPAYER VERY FAIRLY SUBM ITTED THAT THIS ISSUE WAS ELABORATELY CONSIDERED BY THIS TRIBUNAL IN THE CASE OF KANNUR DIST.CO-OP BANK LTD IN ITA NO.323/COCH/2010 ORDER DATED 23/03/2012 AND FOUND THAT IN VIEW OF THE JUDGMENT OF KERALA HIGH COURT IN COMMISSIONER OF INC OME-TAX VS. LORD KRISHNA BANK LTD I.T.A. NO.234 OF 2009 THE TAXPAYER IS NOT E NTITLED FOR ADDITIONAL DEDUCTION AS RURAL BRANCH U/S 36(1)(VIIA) OF THE AC T. WE HEARD THE LD.DR, SHRI SREENIVASU KOLLIPAKA ALSO. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND ALS O PERUSED THE MATERIAL ON RECORD. AS RIGHTLY SUBMITTED BY THE LD.REPRESEN TATIVE FOR THE TAXPAYER THE ISSUE RAISED BY THE TAXPAYER IN THIS APPEAL HAS BEE N ELABORATELY CONSIDERED BY THIS TRIBUNAL IN KANNUR DIST.CO-OPERATIVE BANK LTD (SU PRA) AND FOLLOWING THE JUDGMENT OF THE KERALA HIGH COURT IN THE CASE OF LOR D KRISHNA BANK LTD (SUPRA) THE CO-ORDINATE BENCH FOUND THAT THE TAXPAYER IS NOT ENTITLED FOR DEDUCTION U/S 36(1)(VIIA) IN RESPECT OF RURAL BRANCH. IN FACT TH IS TRIBUNAL HAS OBSERVED AS FOLLOWS, IN THE CASE OF KANNUR DIST.CO-OPERATIVE BANK LTD (SUPRA): ON A CAREFUL PERUSAL OF RELEVANT PROVISIONS OF PAR T V OF BANKING REGULATIONS ACT, 1949, WE NOTICE THAT THE TERM BANKING COMPANY ALSO INCLUDES A CO-OPERATIVE BANK. THUS A CO- OPERATIVE BANK FALLS UNDER THE DEFINITION OF BANKING COMPANY. FURTHER AS PER THE DEFINITION GIVEN IN EXPLANATION UNDER SEC.36(12)(VIIA) OF THE INCOME TAX ACT, A BANKING C OMPANY AS DEFINED IN SEC.5(C) OF THE BANKING REGULATION ACT, W HICH IS NOT A SCH3EDULED BANK, IS CLASSIFIED AS A NON-SCHEDULED BA NK. CONSEQUENTLY, A CO-OPERATIVE BANK, IN OUR VIEW, WOULD BE CLASSIFIED AS A NON-SCHEDULE BANK FOR THE PURPOSE OF SEC.36(1) (VIIA) OF THE ACT. 3 ITA NO.689/COCH/2010 8.2 IN VIEW OF THE FOREGOING DISCUSSIONS, WE ARE OF THE VIEW THAT THE DECISION RENDERED BY HONBLE JURISDICTIONAL KER ALA HIGH COURT IN THE CASE OF THE LORD KRISHNA BANK LTD;, SUPRA, SHALL APPLY TO THE ASSESSEE HEREIN. ACCORDINGLY, WE REJECT THE ALTERN ATIVE PLEA RAISED BY THE ASSESSEE. THUS, THE APPEAL OF THE REVENUE S TANDS ALLOWED. BY FOLLOWING THE ORDER OF THE CO-ORDINATE BENCH OF T HIS TRIBUNAL IN THE CASE OF KANNUR DIST.CO-OPERATIVE BANK LTD (SUPRA) AND FOR THE REASONS STATED THEREIN THE ORDER OF THE COMMISSIONER OF INCOME-TAX(A) IS CONFIR MED. 5. IN THE RESULT, THE APPEAL OF THE TAXPAYER IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 12 TH OCTOBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 12 TH OCTOBER, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH