2015 (11) TMI 1779 - AT - Income Tax

Denial of benefit u/s 80P(2)(i)(a) - HELD THAT - CIT(A) followed various orders of the Cochin Bench of the Tribunal in the case of M/s Kunnamangalam Cooperative Bank vs ITO 2014 (10) TMI 350 - ITAT COCHIN and in the case of M/s Pinarayi Service Cooperative Bank Ltd vs ITO 2014 (7) TMI 1176 - ITAT COCHIN and denied the benefit of deduction u/s 80P - Decided against assessee.

Summary

Issues:
Denial of benefit u/s 80P(2)(i)(a) of the Income Tax Act for assessment years 2007-08, 2008-09, and 2010-11.

Analysis:
The assessee, a cooperative society engaged in banking business, was denied the deduction u/s 80P by the Assessing Officer (AO) for the relevant assessment years. The AO's rationale was based on the insertion of sub-section (4) to sec. 80P w.e.f 1.4.2007, which deemed cooperative banks ineligible for the deduction u/s 80P(2)(i)(a) of the Income Tax Act.

Aggrieved by the AO's decision, the assessee appealed to the CIT(A), who upheld the assessment orders by relying on previous Tribunal orders related to cooperative banks. The CIT(A) dismissed the appeal citing consistency with the Tribunal's decisions in similar cases involving cooperative banks.

The assessee challenged the CIT(A)'s decision before the ITAT COCHIN, arguing that the determination of being a cooperative bank or society should rely on RBI certification. The assessee referred to a judgment by the Karnataka High Court supporting their stance.

After considering the submissions, the ITAT COCHIN upheld the CIT(A)'s decision, following the precedent set by the Cochin Bench of the Tribunal in similar cases. The ITAT COCHIN emphasized consistency with the Tribunal's orders and upheld the denial of deduction u/s 80P for the assessee.

Additionally, ground nos 5 & 7 raised by the assessee were rejected due to the absence of specific arguments during the appeals. Consequently, the ITAT COCHIN dismissed the appeals filed by the assessee, affirming the denial of the deduction u/s 80P for the relevant assessment years.