ITO, KANNUR V. THE PAYYANNUR SERVICE CO-OP BANK LTD, KANNUR

MA 165/COCH/2021

AI Insights

The case involves a Miscellaneous Application (MA) by the Revenue under section 254(2) of the Income-tax Act, 1961, seeking to recall an ITAT order dated 23.06.2016 concerning the Payyannur Service Co-op Bank Ltd. The Revenue contended that there was an apparent mistake in the ITAT's earlier decision, which had granted the assessee a deduction under section 80P(2) of the Act for interest income, referencing a Kerala High Court judgment that was later reversed. However, during the proceedings, it was revealed that the judgment cited by the Revenue had also been reversed by the Supreme Court, leading to the dismissal of the Revenue's application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31389 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 11 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 10-11-2021
• Other Referred Cases: Chirakkal Service Co-operative Bank Ltd. v. CIT, Mavilayi Service Co-operative Bank Ltd. v. CIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: GEORGE THOMAS; C.A
• Section: 254(2)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Waseem Ahmed, Accountant Member and Shri Soundararajan K., Judicial Member MA No. 165/Coch/2021 (Arising out of ITA No. 325/Coch/2012) (Assessment Year: 2009-10) Income Tax Officer Ward -4, Kannur. vs. M/s Payyannur Service Co-op Bank Ltd., Payyannur, Kannur. [PAN: AAABP 0133 D] (Applicant) (Respondent) Applicant by: Smt. Girly Albert, Sr. D.R. Respondent by: Shri George Thomas, C.A Date of Hearing: 20.09.2024 Date of Pronouncement: 17.10.2024 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: This is a Miscellaneous Application (MA) by the Revenue under section 254(2) of the Income-tax Act, 1961 (‘the Act’) in respect of the order dated 23.06.2016 by the Tribunal disposing the assessee’s captioned appeal. 2. The Revenue by way of this MA is seeking to recall the order passed by the ITAT in the case of Payyannur Service Co-op Bank Ltd., in ITA No. 325/Coch/2012 dated 23.06.2016 on the reasoning that there is an apparent mistake in the order of the ITAT within the meaning of the provisions of section 254(2) of the Act. 3. In the present case, the assessee was granted deduction under the provisions of section 80P(2) of the Act of the interest income by the order of the ITAT dated 2 MA No.165/Coch/2021 24.07.2017 after making reference to the judgment of the Hon'ble Kerala High Court in the case of Chirakkal Service Co-operative Bank Ltd. v. CIT[2016] reported in 384 ITR 490 (Ker). As per the Revenue, the said judgment of the Hon'ble Kerala High Court in the case of Chirakkal Service Co-op. Bank Ltd. was reversed by the later judgement of the Hon'ble Kerala High Court in the case Mavilayi Service Co- operative Bank Ltd. v. CIT [2019] reported in 414 ITR 67 (Ker) (FB)vide order dated 19th March 2019. Accordingly, the Revenue preferred the MA for recalling the order passed by the ITAT on the ground of apparent mistake in the order of the ITAT. 4. However, at the time of hearing a query was posed to the learned Sr. DR about the fact that the judgment of the Hon'ble Kerala High Court in the case of Mavilayi Service Co-op. Bank Ltd. (supra) was reversed by the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT reported in [2021] 431 ITR 1 (SC). The learned Sr. DR could not controvert. As such the learned Sr. DR conceded that the MA was preferred before the ITAT before the verdict of the Hon'ble Supreme Court in the case of Mavilayi Service Co-op. Bank Ltd. (supra) and therefore the Revenue has no case in this MA. Accordingly, in view of the above facts, we hold that there is no apparent mistake in the order of the ITAT as alleged by the Revenue. Hence, the miscellaneous application filed by the Revenue is hereby dismissed. 5. In the result, this miscellaneous application filed by the Revenue is hereby dismissed. Order pronounced on 17th October, 2024 under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (Soundararajan K.) JudicialMember (Waseem Ahmed) AccountantMember Bangalore, Dated: 17th October, 2024 3 MA No.165/Coch/2021 Vms Copy to: 1. The Applicant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar, ITAT, Bangalore "