2015 (11) TMI 1778 - AT - Income Tax

Denial of benefit u/s 80P(2)(i)(a) - assessee is a cooperative society mainly engaged in banking business - reasoning of the AO for denying the benefit of section 80P deduction was that the assessee is a cooperative bank engaged in the business of banking and in view of insertion of sub.sec (4) to sec. 80P w.e.f 1.4.2007 cooperative banks were not entitled to get the benefit of deduction u/s 80P(2)(i)(a) - HELD THAT - CIT(A) has followed the various orders of the Cochin Bench of the Tribunal in the cases of M/s Kunnamangalam Co-operative Bank vs Income Tax Officer, ward 2(3) Calicut 2014 (10) TMI 350 - ITAT COCHIN for the assessment year 2009-10 and M/s Pinarayi Service Co-operative Bank Ltd vs Income tax Officer, ward 2, Kannur 2014 (7) TMI 1176 - ITAT COCHIN for the AY 2009-10. Since the Cochin Bench of the Tribunal has decided the issue against the assessee on identical set of facts, we deem it appropriate to follow the coordinate Bench order, for the sake of consistency, which is subject matter of appeal u/s 260A before the Hon ble jurisdictional High Court. Therefore, we uphold the order of the CIT(A) on this issue.Appeal filed by the assessee is dismissed.

Summary

Issues:
Denial of benefit u/s 80P(2)(i)(a) of the Income Tax Act, 1961.

Analysis:
The appeal in question was against the CIT(A)'s order denying the benefit u/s 80P(2)(i)(a) of the Income Tax Act for the assessment year 2010-11. The assessee, a cooperative society engaged in banking business, had its deduction u/s 80P denied by the AO due to the insertion of sub.sec (4) to sec. 80P w.e.f 1.4.2007, which excluded cooperative banks from this benefit. The CIT(A) upheld the denial of deduction based on previous Tribunal decisions related to similar cases. The assessee argued that the determination of being a cooperative bank or society should rely on RBI certification, citing a Karnataka High Court judgment. However, the ITAT Cochin upheld the CIT(A)'s decision, following previous Tribunal orders, and dismissed the appeal, maintaining consistency pending an appeal u/s 260A before the High Court.

The Tribunal's decision was based on the consistency with previous Tribunal orders regarding the denial of deduction u/s 80P for cooperative banks. The assessee's argument regarding RBI certification was not accepted, and the Tribunal upheld the CIT(A)'s decision. The appeal was dismissed, and the order was pronounced on November 2, 2015.