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Income Tax Appellate Tribunal, BANGALORE BENCHES “B”, BANGALORE
Before: Shri George George K, JM & Shri Laxmi Prasad Sahu, AM
O R D E R
Per George George K, JM :
This appeal at the instance of the assessee is directed against Principal Commissioner of Income-tax’s (PCIT) order dated 06.03.2020. The relevant assessment year is 2015- 2016.
The assessee in its grounds of appeal has challenged the revisionary order passed u/s 263 of the I.T.Act as bad in law and also on merits as regards the denial of deduction u/s 80P(2) of the I.T.Act.
None was present on behalf of the assessee. However, the assessee has filed a brief written submission stating therein the Tribunal on identical facts in the case of M/s.Kakkabe VSSN Bank Limited v. PCIT in ITA
. M/s.Bhagamandala VSS Bank Limited. No.490/Bang/2021 (order dated 28.02.2022) had restored the matter to the A.O. de hors the observations of the PCIT in the revisionary order passed u/s 263 of the I.T.Act.
The learned Departmental Representative was duly heard.
We have heard the learned DR and perused the material on record. The Tribunal on identical facts in the case of M/s.Kakkabe VSSN Bank Limited v. PCIT (supra) had restored the matter to the files of the A.O. The Tribunal directed the A.O. to redo the assessment, de hors the observations of the PCIT. The Tribunal directed the A.O. to revisit the matter afresh and follow the principle laid down by the Hon’ble Apex Court in the case of Mavilayi Service Co- operative Bank Ltd. & Ors. v. CIT & Anr. reported in (2021) 431 ITR 1 (SC). The relevant finding of the Tribunal in the case of M/s.Kakkabe VSSN Bank Limited v. PCIT (supra), reads as follows:-
“6. We note that though prima facie, the issues needs to be revisited by the Ld.AO, however, the directions of the Ld.Pr.CIT to make addition in respect of the provision for gratuity as well as expressing the intention of disallowing certain income while computing 80P(2)(e) as well as (a)(i) is not in accordance with law. We also refer that Hon'ble Supreme Court in the case of Mavilayi Service Cooperative Bank Ltd. Vs.CIT (2021) reported in 123 taxmann.com 161 (SC) considered the issue relating to interest income earned and has distinguished the decisions of Hon’ble Karnataka High Court in case of Tumkur Merchants Souharda Credit Co- operative Society Ltd. vs. ITO (supra). In view of the above, we modify the directions of Ld.Pr.CIT by directing the Ld.AO to . M/s.Bhagamandala VSS Bank Limited. carry out de novo verification on the issues considered by the Ld.Pr.CIT in the impugned order having regard to the principle laid down by Hon’ble Supreme Court in case of Mavilayi Service Cooperative Bank Ltd. Vs.CIT (supra). The assessee is directed to file all requisite details in support of the claim which would be verified by the Ld.AO in accordance with law. Needless to say that proper opportunity of being heard to be granted to assessee in accordance with law.”
In view of the above order of the Tribunal, we direct the A.O. to carry out de novo verification of the issues considered by the PCIT in the impugned order. The A.O. shall follow the dictum laid down by the Hon’ble Apex Court in the case of Mavilayi Service Co-operative Bank Ltd. & Ors. v. CIT & Anr. (supra).
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 12th day of July, 2022.