M/S. TELLICHERRY PUBLIC SERVANTS CO-OPERATIVE BANK LTD. V. THE COMMISSIONER OF INCOME TAX

ITA/136/2016

AI Insights

The case involves M/s. Tellicherry Public Servants Co-operative Bank Ltd., which appealed against the denial of income tax exemption for the assessment year 2010-2011. The appellant, a society registered under the Kerala Co-operative Societies Act, 1969, argued that its income from providing credit facilities to its members was exempt under Section 80P(2)(a)(i) of the Income Tax Act, 1961. The initial denial by the Assessing Officer led to this appeal. Both parties acknowledged that the issues were covered by the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd., which was in favor of the assessee. Consequently, the High Court of Kerala set aside the previous orders and allowed the appeal.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 762859 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-02-2021
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. and others v Commissioner of Income Tax and another [2021] 431 ITR 1 (SC)
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: T M SREEDHARAN; DIVYA RAVINDRAN; V P NARAYANAN
• Keywords: Banking; Co-operative Society; Credit Facilities; Exemption; Income tax appeal
• Section: 143(3); 80P(2)(a)(i); 80P(4)

Judgement Text

"I.T.Appeal No.136 of 2016 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 18TH DAY OF FEBRUARY 2021 / 29TH MAGHA,1942 ITA.No.136 OF 2016 AGAINST THE ORDER IN ITA 329/2015 DATED 03-09-2015 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT: M/S. TELLICHERRY PUBLIC SERVANTS CO-OPERATIVE BANK LTD. M.G.ROAD, THALASSERY, KANNUR 670 001, REPRESENTED BY ITS SECRETARY SHRI.ANANDAPRASAD.M BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.DIVYA RAVINDRAN SRI.V.P.NARAYANAN RESPONDENT: THE COMMISSIONER OF INCOME TAX 1ST FLOOR, AAYAKAR BHAVAN, NEW ANNEX BUIDING, NORTH BLOCK, MANANCHIRA, KOZHIKODE 673 001. OTHER PRESENT: SC - SRI. CHRISTOPHER ABRAHAM THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 18.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA No.136 of 2016 2 JUDGMENT Dated this the 18th day of February 2021 S.V.Bhatti, J. Heard Adv.Nisha holding for Adv.V.P.Narayanan for the appellant and Sri Christopher Abraham, learned Standing Counsel for the Income Tax Department. 2. The appellant claims to be a Society established and registered under the provisions of the Kerala Co-operative Societies Act, 1969. The appellant is classified/categorised as a Primary Credit Society by the Joint Registrar of Co-operative Societies, Kannur under Act 1969. 3. The case of appellant is that the income of a Co-operative Society does the business of banking by providing credit facilities only to its members, and the income derived therefrom is exempt from the payment of income tax under Section 80P(2)(a)(i) of the Income Tax Act, 1961. Section 80(P)(4) provides for total exclusion of provisions of the Act in so far as Primary Agricultural Credit Societies are concerned. The instant appeal deals with the order of assessment made for the assessment year 2010-2011. The claim of appellant for exemption under Section 80(P) I.T.Appeal No.136 of 2016 3 was denied by the Assessing Officer under the Act. Hence the appeal. 4. The counsel appearing for the appellant as well as the respondent would state that the issues considered by the orders impugned in the appeal are no more res integra and are covered in favour of the assessee by the judgment of the Apex Court in Mavilayi Service Co-operative Bank Ltd. and others v Commissioner of Income Tax and another1. The statement is placed on record and accepted. 5. By following the dictum of the Hon'ble Supreme Court in the decision referred to above, the orders under appeal in Ann.A dt.21.03.2013, Ann.B dt.17.03.2015 and Ann.C dt.3.9.2015 are set aside. The appeal allowed accordingly. No order as to costs. Sd/- S.V.BHATTI JUDGE Sd/- BECHU KURIAN THOMAS JUDGE css/ 1 [2021] 431 ITR 1 (SC) I.T.Appeal No.136 of 2016 4 APPENDIX PETITIONER'S EXHIBITS: ANNEXURE A TRUE COPY OF THE ASSESSMENT ORDER DATED 21.3.2013 PASSED U/S 143(3) OF THE ACT ALONG WITH COMPUTATION OF INCOME BY THE INCOME TAX OFFICER, WARD-2, KANNUR. ANNEXURE B TRUE COPY OF THE APPELLATE ORDER IN I.T.A.NO.127/KNR/CIT/CLT/2013-2014 DATED 17.3.2015 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)KOZHIKODE. ANNEXURE C TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IN I.T.A. NO.329/COCH/2015 DATED 3.9.2015. "