THE ITO, WARD-2, KASARGODE, KASARGODE V. THE PERLA SERVICE CO-OP BANK LTD, KASARGODE

MA 52/COCH/2021

AI Insights

The case involves the Income Tax Officer, Ward-1, Kasaragod, as the appellant, and Perla Service Co-op. Bank Ltd. as the respondent. The Revenue filed miscellaneous applications under section 254(2) of the Income-tax Act, 1961, seeking to recall an ITAT order that had granted the assessee a deduction of interest income under section 80P(2) of the Act. The Revenue argued that there was an apparent mistake in the ITAT's order due to a reversal of a cited Kerala High Court judgment. However, during the proceedings, it was revealed that the judgment the Revenue relied upon had itself been reversed by the Supreme Court. Consequently, the Tribunal dismissed the Revenue's applications, concluding that there was no apparent mistake in the original order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 38350 (ITAT-COCHIN)
• Duration Of Justice: 5 year(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 30-09-2019
• 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
• Department Lawyers: GIRLY ALBERT
• 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 Nos. 49 to 53/Coch/2021 (Arising out of ITA Nos. 537 to 541/Coch/2017) (Assessment Years: 2007-08 to 2009-10, 2012-13 & 2013-14) Income Tax Officer Ward -1, Kasaragod vs. Perla Service Co-op. Bank Ltd. Perla, Kasaragod 671552 [PAN: AAABT2434M] (Applicant) (Respondent) Appellant by: Smt. Girly Albert, Sr. D.R. Respondent by: ------ None ------- Date of Hearing: 27.09.2024 Date of Pronouncement: 21.10.2024 O R D E R Per Bench These are Miscellaneous Applications (MAs) by the Revenue under section 254(2) of the Income-tax Act, 1961 (‘the Act’) in respect of the order dated 23.07.2018 by the Tribunal disposing the assessee’s captioned appeals. 2. The Revenue by way of these MAs is seeking to recall the order passed by the ITAT in the case of Perla Service Co-op. Bank Ltd. in ITA Nos. 537 to 541/Coch/2017 dated 23.07.2018 on the reasoning that there is an apparent mistake in the order within the meaning of the provisions of section 254(2) of the Act. 3. In the present case, the assessee was granted deduction of the interest income by the ITAT in its order dated 23.07.2018 under the provisions of section 80P(2) of the Act after making reference to the judgement of the Hon'ble Kerala High Court in 2 MA Nos. 49 to 53/Coch/2021 Perla Service Co-operative Bank Ltd. the case of Chirakkal Service Co-operative Bank Ltd. v. CIT[2016] reported in 384 ITR 490 (Ker). As pr the Revenue the said judgement 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 judgement 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 these MAs. 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 applications filed by the Revenue are hereby dismissed. 5. In the result, these miscellaneous applications filed by the Revenue are hereby dismissed. Order pronounced on 21st October, 2024 under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (Soundararajan K.) JudicialMember (Waseem Ahmed) AccountantMember Cochin, Dated: 21st October, 2024 n.p. 3 MA Nos. 49 to 53/Coch/2021 Perla Service Co-operative Bank Ltd. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "