2019 (6) TMI 614 - HC - Income Tax

Deduction u/s 80P (2) - scope of introduction of sub-section (4) - provisions of this Section shall not apply in relation to any Co-operative Bank other than a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank - Primary Agricultural Credit Society or a Co-operative Bank - if the assessee is having a valid registration u/s 8 of the KCS Act, the authorities under the IT Act have to extend the benefit of deduction provided u/s 80P by reason of sub-section (4) thereof, to such societies - HELD THAT - Issue involved in this appeal stands covered through a Full Bench decision of this court in Mavilayi Service Co-operative Bank Ltd. V. Commissioner of Income Tax 2019 (3) TMI 1580 - KERALA HIGH COURT The above appeal is hereby allowed and the impugned order passed by the Income Tax Appellate Tribunal in M/S. KIZHUVILLAM SERVICE CO-OPERATIVE BANK LIMITED, 2018 (9) TMI 1300 - ITAT COCHIN is hereby set aside.

Summary

Issues Involved:
1. Application of Full Bench decision in Mavilayi Service Co-operative Bank Ltd. V. Commissioner of Income Tax
2. Setting aside the order of the Tribunal and remanding the appeal for fresh consideration

Analysis:
The judgment delivered by the High Court of Kerala, with Mr. C. K. Abdul Rehim and Mr. R. Narayana Pisharadi, JJ., addressed the issue of applying a Full Bench decision in Mavilayi Service Co-operative Bank Ltd. V. Commissioner of Income Tax. The court noted that a similar course of action had been taken in a previous case, where the appeal was allowed, the Tribunal's order was set aside, and the case was remanded for fresh consideration. Following this precedent, the court allowed the current appeal, set aside the impugned order passed by the Income Tax Appellate Tribunal, Cochin Bench in ITA No.221/Coch/2018, and remanded the appeal for fresh consideration and disposal by the Tribunal. The court directed the Tribunal to consider the decision of the Full Bench in Mavilayi Service Co-operative Bank Ltd. for guidance. The judgment emphasized consistency in applying legal principles and ensuring fair consideration of cases.