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TMI Blog2023 (11) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... inted out and, in fact, both the stated grounds are incorrect. Tribunal has decided the appeal under reference not by, as claimed, following it s earlier order in Kizhathadiyoor Service Co-operative Bank Ltd. [ 2016 (7) TMI 1405 - ITAT COCHIN] but by the Full Bench of the Hon ble jurisdictional High Court in CIT v. Mavilayi Service Co-operative Bank Ltd. [ 2019 (3) TMI 1580 - KERALA HIGH COURT] In fact, having found the same as laying the law in the matter, it has directed the AO to examine the applicability of the said decision inasmuch as the impugned appellate order was based on decision/s by the Hon ble Court contrary thereto. The larger bench decision being in favour of the Revenue, a challenge to the impugned order in rectific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Appellate Tribunal order in ITA No.78/Coch/2019 dated 17.05.2019, wherein Hon ble ITAT partly allowed the appeals filed by the Revenue. 2. The only issue raised in this Misc. Petition is whether the assessee is entitled to deduction of interest income u/s 80P(2) of the Income Tax Act. 3. The judgment delivered by the Hon ble Income Tax Appellate Tribunal was on the basis of the co-ordinate Bench order of the tribunal in the case of Kizhathadiyoor Service Co-operative Bank Limited (supra). 4. It is to bring to the kind attention of ITAT that, in the case of Kizhathadiyoor SCBL, ITA No.525/Coch/2014 dated 20.07.2016 for AY 2009- 10, relied on by the ITAT, Kottayam District Cooperative Bank, from where the major portion of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks was held deductible u/s.80P(2)(d), which requires being reviewed inasmuch as cooperative societies are not co-operative banks. 3. We have heard the parties, and perused the material on record. 3.1 The relevant part of the impugned order reads as under: 7.1 In view of the dictum laid down by the Full Bench of the Hon ble High Court, the issue of deduction u/s 80P(2)(a)(i) is restored to the Assessing Officer. The Assessing Officer shall examine the activities of the respective assessees and determine whether their activities are in compliance with the activities of a co-operative society functioning under the Kerala Co-operative Societies Act, 1969 and grant deduction u/s 80P(2) in accordance with law. 8. As regards the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision/s by the Hon ble Court contrary thereto. The larger bench decision being in favour of the Revenue, a challenge to the impugned order in rectification proceedings could arise at the instance of the assessee. And which again has to be within the time provided therefor by the statute. As regards the claim of interest on investment in cooperative banks as eligible for deduction u/s. 80P(1) r/w s. 80P(2)(d), we find no such direction per the impugned order, even as the Tribunal has no power of review. We cannot though help adding that the said direction, assuming so, is in agreement with the later binding decision in Pr. CIT v. Peroorkadda SCB Ltd. [2022] 442 ITR 141 (Ker). 4. No case for interference qua the impugned order is accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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