Sri Lakshminarayana Co-op Urban Bank Ltd., Thiruvarur V. ITO, Thanjavur

MA 72/CHNY/2011

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6545 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 19-04-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R VISWANATHAN
• Assessee Lawyers: S SRIDHAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER M.A.NOS. 71 & 72/MDS/2011 (IN I.T.A.NOS. 96 & 97/MDS/2009) ASSESSMENT YEARS : 2004-05 AND 2005-06 SRI LAKSHMI NARAYANA CO- OPERATIVE URBAN BANK LTD., VIJAYAPURAM, TIRUVARUR-610 001. PAN AABAS 3004 C VS. THE INCOME-TAX OFFICER, WARD-I(1), NAGAPATTINAM/ THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-I, THANJAVUR. (APPLICANT) (RESPONDENT) APPLICANT BY : S HRI S. SRIDHAR RESPONDENT BY : SHRI R. VISWANATHAN O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THESE MISCELLANEOUS PETITIONS ARE FILED BY THE ASSE SSEE BANK AGAINST THE ORDER OF THE I.T.A.T., CHENNAI D BENCH DATED 18.1.2011 PASSED IN ITA NOS.96 & 97/MDS/2009 PERTAI NING TO THE ASSESSMENT YEARS 2004-05 AND 2005-06. THESE PETITI ONS ARE IN THE NATURE OF RECTIFICATION PETITIONS. TO MAKE THE MATTER CLEAR THE MA 71 & 72/11 :- 2 -: PRAYER MADE BY THE ASSESSEE IN THE BODY OF THE PETI TIONS IS EXTRACTED BELOW : 1. THE APPELLANT HAS FILED APPEAL U/S 253 OF THE INCOME-TAX ACT, 1961 RELEVANT FOR 2004-05 AND 2005- 06 ASSTS. 2. THE HON'BLE ITAT, CHENNAI D BENCH IN ITS ORDER ITA NOS.96 & 97/MDS/2009, DT. 18.01.2011, HAS PARTL Y ALLOWED THE CLAIM OF EXEMPTION TO THE INTEREST INCO ME OF THE ASSESSEE BANK EARNED FROM SLR LOCKED SECURITIES. THIS FINDING WAS MADE FOLLOWING THE EA RLIER DECISION OF THE CO-COORDINATING BENCH IN THE CASE O F MAYURAM CO-OPERATIVE URBAN BANK LTD. V. INCOME TAX OFFICER IN ITA NOS.208 & 1421/MDS/2007, DT. 07.09.2007. 3. THE HON'BLE ITAT, CHENNAI D BENCH IN ITS ORDER DT. 18.01.2011 IN PARA 7, AFTER DISCUSSING THE OTHER GROUNDS RAISED HAS HELD IT IS TO BE SEEN THAT SEC.6(1)(A) APPLIES TO THE BANKS GOVERNED BY THE PROVISIONS OF BANKING REGULATION ACT. IT IS NOT APPLICABLE TO THE ASSESSEE PER SE AS IT IS GOVERNED BY THE PROVISIONS OF CO-OPERATIVES. THIS IS VERY CLEA R FROM THE FACT THAT THE DEDUCTIONS AVAILABLE TO A CO-OPER ATIVE SOCIETY UNDER VARIOUS SEGMENTS OF SEC.80P ARE NOT AVAILABLE TO A COMMERCIAL BANK GOVERNED BY THE PROVISIONS OF BANKING REGULATION ACT. THEREFORE, TH ERE MA 71 & 72/11 :- 3 -: IS NO REASONING IN CONNECTING THE BANKING PROFIT WI TH REFERENCE TO THE DEDUCTION AVAILABLE U/S 80P WITHOU T ANY EXEMPTION. THE PARTICULARS AND DETAILS HAVE TO BE EXAMINED TO ARRIVE AT A DEFINITE CONCLUSION. 4. CONSEQUENTLY THE HON'BLE BENCH HAS REMITTED BACK TO THE A.O TO DECIDE AFRESH THE ABOVE ISSUE AFTER HEARING THE ASSESSEE. 5. THE BANKING REGULATION ACT 1949 HAS BEEN AMENDED BY ACT 23 OF ACT 1965 W.E.F. 01.03.1966; BY THESE AMENDMENTS A NEW SEC.56 UNDER PART V WAS INSERTED IN THE BANKING REGULATION ACT 1949. BY TH IS AMENDMENT, THE PROVISIONS OF THE BANKING REGULATION ACT 1949, ARE MADE APPLICABLE TO CO-OPERATIVE SOCIE TY CARRYING ON THE BUSINESS OF BANKING. THIS AMENDMEN T TO THE BANKING REGULATION ACT WAS NOT CONSIDERED BY THE HON'BLE BENCH. IT IS TO CONSIDER THE ISSUE OF APPLICABILITY OF THE PROVISIONS OF THE BANKING REGULATION ACT 1949 TO THE CO-OPERATIVE SOCIETY CARRYING ON THE BUSINESS OF BANKING, IT WAS REMITTE D TO THE A.O. 6. BECAUSE OF NON CONSIDERATION OF THE AMENDMENT T O THE BANKING REGULATION ACT 1949 THE GROUNDS RAISED IN THE APPEAL HAVE NOT BEEN CONSIDERED FULLY. THIS AMOUNTS TO MISTAKE OF LAW; THIS MAY BE RECTIFIED U/ S 254(2) OF THE ACT. MA 71 & 72/11 :- 4 -: 7. THE APPELLANT SUBMITS THAT THIS APPLICATION U/S 254(2) OF THE INCOME TAX ACT IS FILED WITHIN 4 YEAR S FROM THE DATE OF ORDER I.E. 18.01.2011. 2. IT IS TO BE SEEN THAT WE HAVE ALREADY REMITTED B ACK THE CASES TO THE DESK OF THE ASSESSING OFFICER TO PASS FRESH ORDERS IN ACCORDANCE WITH LAW. THAT DIRECTION ALSO TAKES IN ITS FOLD ALL THE CONTENTIONS RAISED BY THE ASSESSEE IN THE PRESENT P ETITIONS. 3. THEREFORE, WE FIND THAT THERE IS NOTHING SPECIFI C TO RECTIFY IN THE SUBJECT ORDER PASSED BY THE TRIBUNAL. WITH THE ABOVE OBSERVATION, ACCORDINGLY, THESE MISCELLANEOUS PETIT IONS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING, ON FRIDAY, THE 17 TH DAY OF JUNE, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 17 TH JUNE, 2011 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR