AZHIYUR SERVICE COOPERATIVE BANK LIMITED,KOZHIKODE vs. ITO WARD 2(2), KOZHIKODE

PDF · subscribers
ITA 566/COCH/2025Status: DisposedITAT Cochin25 August 2025AY 2014-15Bench: SHRI INTURI RAMA RAO (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the appellant society did not have a banking license and was classified as a primary agricultural credit cooperative society, the provisions of sub-section (4) of Section 80P were not applicable. The Supreme Court's ruling in Mavilayi Service Co-Operative Bank Ltd. v. CIT was deemed applicable.

What were the facts?

The appellant, a cooperative society, filed a return of income disclosing nil income after claiming a deduction under Section 80P. The Assessing Officer (AO) denied this deduction, and the CIT(A) upheld the AO's decision.

What were the issues?

Whether the appellant society is eligible for deduction claimed under section 80P of the Act.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, COCHIN BENCH:: COCHIN

Before: SHRI INTURI RAMA RAO, AM

For Respondent: Smt. Leena Lal, Sr. DR
Hearing: 21.08.2025Pronounced: 25.08.2025

Assessment Year: 2014-15 Azhiyur Service Cooperative .......... Appellant Bank Ltd. No.7893, 11/269B, Azhiyur, Vadakara, Kozhikode, [PAN: AAVFA 0167 H] vs. Income Tax Officer, .......... Respondent Ward-2(2), Kozhikode. Appellant by: None Respondent by: Smt. Leena Lal, Sr. DR Date of Hearing: 21.08.2025 Date of Pronouncement: 25.08.2025 O R D E R This is an appeal filed by the assessee directed against the order passed by the Additional/Joint Commissioner of Income Tax (Appeals)-1, Nashik [for short, ‘Ld. CIT(A)] dated 07.07.2025 u/s.250 of the Income Tax Act, 1961 (for short, 'the Act') for Assessment Year (AY) 2014-15.

2.

Brief facts of the case are that appellant is a cooperative society registered under Kerala Co-operative Societies Act, 1969. It is classified as primary agricultural credit cooperative society. It is engaged in the business of accepting deposits from member and providing credit facilities to its member. The return of income for the A.Y. 2014-15 was filed on 21/12/2016 disclosing nil income (Azhiyur Service Co-op. Bank Ltd.) after claiming deduction under section 80P of the Act. Against the said return of income, the assessment was completed by the ITO, Ward-2(2), Kozhikode (for short, ‘AO’) vide order dated 21/12/2016 passed under section 143(3) of the Act at a total income of Rs. 16,19,169/-. While doing so, the AO denied the deduction claimed under section 80P of the Act following the Full Court judgment of the Hon'ble Kerala High Court in the case of The Chirakkal Service Cooperative Bank Ltd. & Others in dt.15/02/2016.

3.

Being aggrieved by the above assessment order, an appeal was filed by the appellant before the Ld. CIT(A), who vide impugned order dismissed the appeal placing reliance on the provisions of sub- section (4) of section 80P of the Act.

4.

Aggrieved by the order of Ld. CIT(A), the Assessee is in appeal before this Tribunal.

5.

When appeal was calledon for hearing, none appeared on behalf of the appellant despite due service of notice of hearing. After hearing ld.Sr.DR, I proceed to dispose of the appeal on merits.

6.

I have heard ld. DR and perused the material on record. The solitary issuethat arises for my consideration is that whether the appellant society is eligible for deduction claimed under section 80P of the Act or not. The appellant is a cooperative society, duly registered under the Kerala Cooperative Society Act, 1969. It is classified as Primary Agricultural Credit Cooperative Society and it (Azhiyur Service Co-op. Bank Ltd.) does not enjoy any banking licence. Therefore, the provisions of sub-section (4) of section 80P have no application to the appellant society. The ratio laid down by the Hon'ble Supreme Court in the case of Mavilayi Service Co-Operative Bank Ltd. v. CIT (2021) 431 ITR 01 is squarely applicable to the facts of the present case. Therefore, I direct the AO to allow deduction claimed by the Assessee under section 80P of the Act. Thus, the grounds raised

by the appellant stand allowed.

7. In the result, appeal filed by the appellant stands allowed. Order pronounced in open Court on 25th August, 2025.

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →