Cherthala Town Service Co-op Bank Ltd, Alappuzha V. The ITO, Alappuzha

ITA 704/COCH/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7447 (ITAT-COCHIN)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 06-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRITUNJAYA SHARMA
• Assessee Lawyers: KRISHNA KUMAR A
• Keywords: Principle of natural justice; Competent authority
• Section: 143(3); 80P; 250; 54; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN SMC BENCH, COCHIN BEFORE SHRI GEORGE GEORGE K , JUDICIAL MEMBER ITA NO. 704 /COCH/201 9 : ASST.YEAR 2013 - 2014 M/S. CHERTHALA TOWN SERVICE CO - OPERATIVE BANK LIMITED, CHERTHALA ALAPPUZHA 688 524 PAN : AAATC4967G . VS. THE INCOME TAX OFFICER WARD 1 ALAPPUZHA. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KRISHNA KUMAR A., FCA RESPONDENT BY : SRI.MRITUNJAYA SHARMA , SR.DR DATE OF HEARING : 20 . 01 .20 20 DATE OF PRONOUNCEMENT : 20. 01.2020 O R D E R THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) , DATED 30.09.2019 , PASSED U/S . 1 54 R.W.S. 250 OF THE I.T.ACT . THE RELEVANT ASSESSMENT YEAR IS 2013 - 2014 . 2. THE BRIEF FACTS OF THE CASE ARE AS FOLLOW: THE 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 29.08.2013 , DECLARING TOTAL INCOME OF RS.4,200 AFTER CLAIMING DEDUCTION U/S 8 0P OF THE I.T.ACT. THE ASSESSING OFFICER PASSED AN ORDER U/S 143(3) OF THE I.T.ACT VIDE ORDER DATED 11.03.2016 , 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 ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 2 THAT THE ASSESSEE WAS DOING THE 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 ASS ESSING OFFICER ALSO DISALLOWED THE CLAIM OF DEDUCTION 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 PREFERRED AN 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 ALL OWED 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. SUBSEQUENTLY, 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 CO - OPERATIVE BANK LTD. V. CIT [ITA NO.97/2016 ORDER DATED 19 TH MARCH, 2019]. THE ASSESSEE OBJECTED TO THE ISSUANCE OF NOTICE. HOWEVER, THE CIT(A) REJECTED THE OBJECTIONS RAISED BY THE ASSESSEE AND PASSED AN ORDER U/S 154 OF THE I.T.ACT, DISALLOWING THE CLA IM OF THE ASSESSEE U/S 80P(2) OF THE I.T.ACT. ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 3 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL RAISING THE FOLLOWING GROUNDS: - 1. THE ORDER OF THE CIT (A) IS WITHOUT JUSTIFICATION I.E., CONTRARY TO THE LAW, FACTS AND CIRCUMSTANCES OF THE CASE AND AT ANY RATE OPPOSED TO PRINCIPLES OF EQUITY, NATURAL JUSTICE AND FAIR PLAY. 2. THE LEARNED CIT (A) ERRED IN DISALLOWING DEDUCTION CLAIMED OF RS 1,50,947/ - U/S 80P OF THE INCOME TAX ACT ON THE GROUND THAT, THE APPELL ANT DOES NOT FALL UNDER THE CATEGORY OF PRIMARY AGRICULTURAL CREDIT SOCIETY, AS DEFINED BY PART - V OF BANKING REGULATION ACT, 1949. 3 . THE LEARNED CIT (A) ERRED IN HOLDING THAT THE APPELLANT IS A CO - OPERATIVE SOCIETY REGISTERED UNDER THE CO - OPERATIVE SOCIE TIES ACT AND A PRIMARY AGRICULTURAL CREDIT SOCIETY (UNDER RULE 15 (1) (A) (3) (A) OF THE KERALA CO - OPERATIVE SOCIETIES ACT) AS RECOGNIZED BY THE ASSISTANT REGISTRAR (GENERAL) OF CO - OPERATIVE SOCIETIES, ALAPPUZHA ON ONE HAND AND HOLDING THAT THE APPELLANT I S NOT A CO - OPERATIVE SOCIETY ELIGIBLE FOR DEDUCTION, U/S. 80P FOR THE PURPOSE OF INCOME TAX ACT, 1961 ON THE OTHER HAND. THE LEARNED CIT (A) HAVING FOUND THAT THE APPELLANT WAS INVOLVED IN LENDING TO AGRICULTURAL SECTOR, THERE WAS NO JUSTIFICATION TO REJEC T THE CLAIM OF DEDUCTION U/S 80P OF THE INCOME TAX IN TOTO. 4. THE LEARNED CIT (A) DISREGARDED THE STATUS OF THE APPELLANT SOCIETY. THE COMPETENT AUTHORITY TO DECIDE THE STATUS OF THE APPELLANT SOCIETY HAS CATEGORIZED SOCIETY AS PRIMARY AGRICULTURAL CREDI T SOCIETY. THE CIT(A) PROCEEDED WITH THE APPELLATE ORDER WITHOUT PROPERLY ADVERTING TO THE CLASSIFICATION OF THE APPELLANT BY THE STATUTORY AUTHORITY. THEREFORE THE APPELLATE ORDER MADE BY THE CIT(A) IS WITHOUT APPLICATION OF MIND AND DISALLOWANCE OF THE C LAIMS OF THE APPELLANT IS LIABLE TO BE INTERFERED WITH. ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 4 5. THE LEARNED CTT(A) ERRED IN APPLYING THE PROVISIONS OF 80P, SUB - SECTION (4) OF 80P RESTRICTS THE EXCLUSION TO ANY COOPERATIVE BANK. FURTHER, THE RESTRICTION WOULD NOT APPLY TO PRIMARY AGRICULTURAL CREDIT SOCIETY (PACS) OR PRIMARY CO - OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK (PCARD). EXPLANATION TO SUB - SECTION (4) OF SECTION 80P READS AS FOLLOWS: - A) EXPLANATION (A) BELOW SUB - SECTION (4) PROVIDES THAT 'CO - OPERATIVE BANK' AND 'PRIMARY AGRI CULTURAL CREDIT SOCIETY' SHALL HAVE THE MEANINGS RESPECTIVELY ASSIGNED TO THEM IN PART V OF THE BANKING REGULATION ACT, 1949. B) EXPLANATION (B) BELOW SUB - SECTION (4) OF SECTION 80P OF THE ACT DEFINES 'PRIMARY CO - OPERATIVE AGRICULTURAL AND RURAL DEVELOP MENT BANK' AS A SOCIETY HAVING ITS AREA OF OPERATION CONFINED TO A TALUK AND THE PRINCIPAL OBJECTIVE OF WHICH IS TO PROVIDE LONG TERM CREDIT FOR AGRICULTURAL AND RURAL DEVELOPMENT ACTIVITY. THUS, IT MAY BE NOTED THAT: (A) THE DEDUCTION IS NEGATED ONLY TO A CO - OPERATIVE BANK CARRYING ON BANKING AND FINANCE. THE DEDUCTION WOULD BE DENIED TO THE CO - OPERATIVE BANK EVEN IN RESPECT OF ANY NON - BANKING ACTIVITY, WHICH MAY BE PERMISSIBLE UNDER THE APPLICABLE PROVISIONS OF LAW. (B) PACS AND PCARD WILL CONTINUE TO ENJOY THE DEDUCTION. THE RESTRICTION DOES NOT APPLY TO THEM. (C) ANY OTHER SOCIETY, NOT BEING A CO - OPERATIVE BANK, WILL CONTINUE TO ENJOY THE DEDUCTION, IF ANY, AVAILABLE TO IT IN RESPECT OF PROVIDING CREDIT OR FINANCE TO THE MEMBERS OR OTHERWISE. SINCE YOUR APPELLANT IS NOT A CO - OPERATIVE BANK AS DEFINED IN THE BANKING REGULATION ACT, RESTRICTION DOCS NOT APPLY TO THE APPELLANT. YOUR APPELLANT ALREADY POSSESSES A CERTIFICATE FROM THE COMPETENT AUTHORITY REGARDING ITS STATUS AS PRIMARY AGRICULTURAL CREDIT SOCIETY (PACS). HENCE THE BENEFIT OF SECTION SOP IS AVAILABLE TO YOUR APPELLANT. EVEN THOUGH THE CIT (A) ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 5 DISREGARDED THE CLAIM OF YOUR APPELLANT AS A PACS, HE OUGHT TO HAVE APPRECIATED THAT THE SOCIETY IS NOT A CO - OPERATIVE BANK AS DEFINED IN BANKIN G REGULATION ACT. YOUR APPELLANT TRUST THAT, EVEN IF THE STATUS OF PACS IS REJECTED, DEDUCTION UNDER 80P IS TO BE ALLOWED CONSIDERING IT AS A CO - OPERATIVE SOCIETY, NOT BEING A CO - OPERATIVE BANK, PROVIDING CREDIT OR FINANCE TO THE MEMBERS OR OTHERWISE. 6. THE LEARNED CIT(A) OUGHT TO HAVE NOTED THAT THE INCOME OF THE APPELLANT INCLUDED INCOME THAT WAS EXEMPT NOT ONLY U/S 80P(2)(A)(I) OF THE INCOME TAX ACT, BUT ALSO INCOME THAT WERE, EXEMPT U/S 80P(2)D) OF THE INCOME TAX ACT, WHICH FACT HAS BEEN OVERLOOKED B Y THE CIT (A). 7. YOUR APPELLANT PRAYS FOR PERMISSION TO PRESENT ALTERNATE AND ADDITIONAL GROUNDS AT THE TIME OF PERSONAL HEARING. YOUR APPELLANT THEREFORE PRAYS THAT THE INCOME ASSESSED MAY BE DELETED AND ALLOW DEDUCTION U/S 80P. 6. THE LEARNED AR RELIED ON THE GROUNDS RAISED. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, STRONGLY SUPPORTED THE ORDERS OF THE INCOME - TAX AUTHORITIES. 7. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE HONBLE JURISDICTIONAL HIG H COURT IN THE CASE OF CHIRAKKAL SERVICE CO - OPERATIVE CO - OPERATIVE BANK LTD. V. CIT [(2016) 384 ITR 490 (KER.)] HAD HELD THAT WHEN A CERTIFICATE HAS BEEN ISSUED TO AN ASSESSEE BY THE REGISTRAR OF CO - OPERATIVE SOCIETIES CHARACTERIZING IT AS PRIMARY AGRICULT URAL 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. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB 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 (SUPRA) . 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 SOCIETY 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 O FFICER IS NOT BOUND BY THE REGISTRATION CERTIFICATE ISSUED BY THE REGISTRAR OF KERALA CO - OPERATIVE SOCIETY CLASSIFYING THE ASSESSEE - SOCIETY AS A CO - OPERATIVE SOCIETY. THE HONBLE HIGH COURT HELD THAT EACH ASSESSMENT YEAR IS SEPARATE AND ELIGIBILITY SHALL B E 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 B E CONTENDED THAT, WHILE CONSIDERING THE CLAIM MADE BY AN ASSESSEE SOCIETY FOR DEDUCTION UNDER SECTION 80P OF THE IT ACT, AFTER THE INTRODUCTION OF SUB - SECTION (4) THEREOF, THE ASSESSING OFFICER HAS TO EXTEND THE BENEFITS AVAILABLE, MERELY LOOKING AT THE CL ASS OF THE SOCIETY AS PER THE CERTIFICATE OF REGISTRATION ISSUED UNDER THE CENTRAL OR STATE CO - OPERATIVE SOCIETIES ACT AND THE RULES MADE THEREUNDER. ON SUCH A CLAIM FOR DEDUCTION UNDER SECTION 80P OF THE IT ACT, THE ASSESSING OFFICER HAS TO CONDUCT AN ENQ UIRY 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 DIVISI ON BENCH HELD THAT THE APPELLANT SOCIETIES HAVING BEEN CLASSIFIED AS PRIMARY AGRICULTURAL CREDIT SOCIETIES BY THE COMPETENT AUTHORITY UNDER THE KCS ACT, IT HAS NECESSARILY TO BE HELD THAT THE PRINCIPAL OBJECT OF SUCH SOCIETIES IS TO UNDERTAKE ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 7 AGRICULTURAL CREDIT ACTIVITIES AND TO PROVIDE LOANS AND ADVANCES FOR AGRICULTURAL PURPOSES, THE RATE OF INTEREST ON SUCH LOANS AND ADVANCES TO BE AT THE RATE TO BE FIXED BY THE REGISTRAR OF CO - OPERATIVE SOCIETIES UNDER THE KCS ACT AND HAVING ITS AREA OF OPERATION CONFI NED TO A VILLAGE, PANCHAYAT OR A MUNICIPALITY AND AS SUCH, THEY ARE ENTITLED FOR THE BENEFIT OF SUB - SECTION (4) OF SECTION 80P OF THE IT ACT TO EASE THEMSELVES OUT FROM THE COVERAGE OF SECTION 80P AND THAT, THE AUTHORITIES UNDER THE IT ACT CANNOT PROBE INT O 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 DEDUCTION UNDER SECTION 80P OF THE INCOME TAX ACT, BY REASON OF SUB - SECTION (4) THEREOF, THE ASSESSING OFFICER HAS TO CONDUCT AN ENQ UIRY 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 268] 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 DEDUCTION UNDER SECTION 80P OF THE IT ACT, BY REASON OF SUB - SECTION (4) THEREOF, IF THE ASSESSEE SOCIETY CEASES TO BE THE SPEC IFIED CLASS OF SOCIETIES FOR WHICH THE DEDUCTION IS PROVIDED, EVEN IF IT WAS ELIGIBLE IN THE INITIAL YEARS. 7.1 THE CIT(A) HAD INITIALLY ALLOWED THE APPEAL OF THE ASSESSEE AND GRANTED DEDUCTION U/S 80P(2) OF THE I.T.ACT. SUBSEQUENTLY, THE CIT(A) PASSED O RDER U/S 154 OF THE I.T.ACT, WHEREIN THE CLAIM OF DEDUCTION U/S 80P OF THE I.T.ACT WAS DENIED, BY RELYING ON THE JUDGMENT OF THE LARGER BENCH OF THE ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 8 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 ASSESSEE 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 BENC H OF THE HONBLE JURISDICTIONAL HIGH COURT (SUPRA), I RESTORE THE ISSUE OF DEDUCTION U/S 80P(2) TO THE FILES OF THE ASSESSING OFFICER. 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 GRANT 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 BANKIN G ACTIVITY OF THE ASSESSEE, AND THEREFORE, THE SAID INTEREST INCOME WAS ELIGIBLE TO BE ASSESSED AS `INCOME FROM BUSINESS INSTEAD OF `INCOME FROM OTHER SOURCES. HOWEVER, AS REGARDS 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 ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 9 BY THE LARGER BENCH OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF THE MAVILAYI SERVICE CO - OPERATIVE BANK LTD. V. CIT (SUPRA) AND EXAMINE THE ACTIVITIES OF THE ASSESSEE - SOCIETY BEFORE GRANTING DED UCTION U/S 80P OF THE I.T.ACT ON SUCH INTEREST INCOME. IT IS ORDERED ACCORDINGLY. 8 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 20 TH DAY OF JANUARY, 2020 . ( GEORGE GEORGE K ) JUDICIAL MEMBER COCHIN ; DATED : 20 TH J ANUARY, 2020 . DEVADAS 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. THE DR, ITAT, COCHIN 6. GUARD FILE. ITA NO. 704 / COCH /201 9 M/S. CHERTHALA TOWN SCB LTD. 10 DATE INITIAL 1. DRAFT DICTATED ON 20.01.2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 20.01.2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 11. DRAFT DICTATION SHEETS ARE ATTACHED SR.PS