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

MA 164/COCH/2021

AI Insights

The case involves multiple miscellaneous applications (MA Nos. 246/Coch/2021 and others) filed by the Income Tax Officer against various cooperative banks, seeking recall of earlier Tribunal orders that allowed deductions under section 80P(2) of the Income Tax Act, 1961. The Revenue's argument was based on a contrary decision by the Full Bench of the Kerala High Court in Pr.CIT v. Mavilayi Service Co-operative Bank Ltd. However, this was countered by the Supreme Court's overruling of the High Court's decision. The Tribunal, referencing the Supreme Court's decision, dismissed the Revenue's applications, affirming the legality of the deductions allowed in the earlier orders.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38544 (ITAT-COCHIN)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Other Referred Cases: Pr.CIT v. Mavilayi Service Co-operative Bank Ltd. [2019] 414 ITR 67 (Ker) (FB), Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC), Kil Kotagari Tea & Coffee Estates Co. Ltd. vs. ITAT [1988] 174 ITR 579 (Ker)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM MA No. 246/Coch/2021 : AY – 2011-12 (Arising out of ITA No. 142/Coch/2019) The Income Tax Officer Ward - 2(3), Thiruvananthapuram vs. Anand Farmers Service Co-op. Bank Ltd., Mithirmala P.O., Thiruvananthapuram [PAN: AABAM1844L] (Appellant) (Respondent) MA Nos. 108 to 110/Coch/2021 : AYs – 2007-08 to 2009-10 (Arising out of ITA Nos. 691 to 693/Coch/2013) The Income Tax Officer Ward – 1, Kannur vs. Kadannappalli Panappuzha Service Co-operative Bank Ltd. Kadannappalli, Kannur [PAN: AAAAK6740Q] (Appellant) (Respondent) MA Nos. 123 & 124/Coch/2021 : AYs – 2007-08 & 2008-09 (Arising out of ITA Nos. 748 & 749/Coch/2013) The Income Tax Officer Ward – 1, Kanniur vs. Kadachira Service Co-op. Bank Ltd. Kadachira P.O., Kannur [PAN: AABAM1844L] (Appellant) (Respondent) 2 MA No. 246/Coch/2021 The Income Tax Officer MA Nos. 163 & 164/Coch/2021 : AYs – 2009-10 & 2010-11 (Arising out of ITA Nos. 134 & 719/Coch/2013) The Income Tax Officer Ward - 2, Kasaragod vs. Kottachery Service Co-op. Bank Ltd. Ko6tachery, Kanhangad Thiruvananthapuram [PAN: AAAAT3164F] (Appellant) (Respondent) MA Nos. 228 to 232/Coch/2021 : AYs – 2007-08 to 2013-14 (Arising out of ITA Nos. 442 to 446/Coch/2017) The Income Tax Officer Ward – 1, Kasaragod vs. Kasaragod Service Co-op. Bank Ltd. Kasaragod 671121 [PAN: AAAAT6907G] (Appellant) (Respondent) MA Nos. 243 to 245/Coch/2021 : AYs – 2007-08, 08-09 & 10-11 (Arising out of ITA Nos. 708 to 710/Coch/2013) The Income Tax Officer Ward – 1, Kannur vs. Valapattanam Service Co-op. Bank Ltd., Valapattanam, Kannur [PAN: AAAJV0431G] (Appellant) (Respondent) Applicant by: Smt. Leena Lal, Sr. D.R Respondent by: .------- None ------- Date of Hearing: 13.12.2024 Date of Pronouncement: 21.01.2025 3 MA No. 246/Coch/2021 The Income Tax Officer O R D E R Per: Inturi Rama Rao, AM These Miscellaneous Applications are filed by the Revenue seeking recall of the orders passed by this Tribunal on the ground that the impugned orders passed by this Tribunal allowing the deduction u/s. 80P(2) of Income Tax Act, 1961 (hereinafter \"the Act\") is contrary to the law laid down by the Full Bench of the Hon'ble Kerala High Court in the case of Pr.CIT v. Mavilayi Service Co- operative Bank Ltd. [2019] 414 ITR 67 (Ker) (FB). 2. However, we find that the decision of the Full Bench of Hon'ble Jurisdictional High Court was overruled by the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC). 3. The decision of the Hon'ble Supreme Court always relates back to the inception of the provision as held by the Hon'ble Jurisdictional High Court in the case of Kil Kotagari Tea & Coffee Estates Co. Ltd. vs. ITAT [1988] 174 ITR 579 (Ker). In view of this we find no merit in the miscellaneous application filed by the Revenue. 4. In the result, the miscellaneous applications filed by the Revenue are dismissed. Order pronounced in the open court on 21st January, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st January, 2025 n.p. 4 MA No. 246/Coch/2021 The Income Tax Officer 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, Cochin "