PCIT v. Peroorkada Service Co-op. Bank Ltd.

Poothakulam Service Co Opearative Bank Ltd No 2944, Kollam vs. ITO Ward - 2, Kollam

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2020-21 Poothakulam Service Co-Op. Bank Ltd. .......... Appellant Poothakulam P.O., Kollam 691302 [Pan: Aadap3252H] Vs. The Income Tax Officer, Ward-2 .......... Respondent Aayakar Bhavan, Karbala Junction Kollam 691302 Appellant By: Shri Rajagopal, Ca Respondent By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 19.12.2024 Date Of Pronouncement: 21.01.2025

…rties and 5. perused the material available on record. We notice that the issue related to interest income received from banks stands adjudicated by Hon'ble Jurisdictional High Court’s decision in the case of PCIT v. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) wherein their Lordships have rejected the Revenue’s identical stand as under: - “12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub-sections and clauses. The Parliament has considered the various situations in which the exigible income and the deductable income o…

Vallachira Service Co-Op Bank Ltd, Thrissur vs. The ITO Ward 2(1), Thrissur

In the result, the appeal filed by the assessee stands allowed and the stay application stands dismissed

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm & Sa No. 116/Coch/2023 Assessment Year: 2010-11 Vallachira Service Co-Op. Bank Ltd .......... Appellant Vallachira P.O., Thrissur 680562 [Pan: Aaaav9543J] Vs. The Income Tax Officer .......... Respondent Ward - 2(1), Thrissur Appellant By: Shri Ramdas, Ca Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 19.12.2024 Date Of Pronouncement: 21.01.2025

…parties and perused the material available on record. We notice that the issue related to interest income received from banks stands adjudicated by Hon'ble Jurisdictional High Court’s decision in the case of PCIT v. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) wherein their Lordships have rejected the Revenue’s identical stand as under: - “12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub-sections and clauses. The Parliament has considered the various situations in which the exigible income and the deductable income o…

Pallipuram Service Cooperative Bank Ltd No 1308, Pallippuram vs. ITO, Ward 2, Alappuzha/

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

…of the ld.CIT(A), the assessee has come up in appeal before us and contended that the claim of the assessee may kindly be allowed in view of the judgment of the Hon’ble jurisdictional High Court in the case of PCIT v. Peroorkada Service Co-operative Bank Ltd. 442 ITR 141 (Ker.) and Sahyadri Co-operative Credit Society Ltd. 301 Taxman 36(Ker.). 5. The learned Departmental Representative relied upon the orders of the authorities below. 3 ITA No.772/Coch/2023. Pallipuram SCB Limited. 6. We have heard the rival submissions and perused the material on record. We observe that similar issue has been decided by us in t…

Karikunnam Service Co-Operative Bank Ltd, Thodupuzha vs. ITO, Ward-1& Tps, Thodupuzha

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Assessment Year : 2017-18

…the Hon’ble Jurisdictional High Court had decided that the incomes earned by the society from the deposits made with the other co- operative societies and co-operative banks are entitled for deduction u/s. 80P(2)(a)(iv) of the Act in the judgment reported in 442 ITR 141, We are of the view that the issue requires denovo consideration by the assessing officer in the light of the judgment by the Hon’ble Supreme Court in case of Mavilayi Service Co-operative Bank Ltd. vs. CIT reported in 431 ITR 1 and also the judgment of the Hon’ble Jurisdictional High Court in case of PCIT vs. Peroorkada Service Co-operative Bank…

Trichur Dist Electricity Board Employees Co-Op Society Limited, Thrissur vs. ITO, Ward-2(1), Thrissur

In the result, the appeal filed by the assessee is allowed as indicated above

Bench: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

…d) or sec.80P(2)(a)(i)would be allowed to the assessee. The learned Counsel for the assessee has relied upon the judgment of the Hon’ble Kerala High Court in the case of PCIT v.Peroorkada Service Co-operative Bank Ltd.andVilappil Service Co-operative Bank Ltd.442 ITR 141 (Ker.). 5. The learned Departmental Representative relied upon the orders of the authorities below and contended that so far as 3 ITA No.496/Coch/2024. Thrissur Dist Electricity Board Employees Co-op So Ltd. the deduction of sec.80P(2)(a)(i) is concerned, the issue is no more res integra in view of the judgment of the Hon’ble Supreme Court in th…

Bharananganam Service Co-Operative Bank Ltd. No. 4150, Bharananganam vs. National E-Assessment Centre, Delhi

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

Bench: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

…td. reported in 431 ITR 1 (SC). The assessee also draw the attention of the ld.CIT(A) towards the judgment of the Hon’ble Kerala High Court in the case of PCIT v. Peroorkada Service Co-operative Bank Ltd.and Vilappil Service Co-operative Bank Ltd. reported in 442 ITR 141 (Ker.) and Hon’ble Andhra Pradesh High Court in the case of The Citizen Co-operative Society Ltd. v. ACIT 4. The learned CIT(A) denied the claim of the assessee u/s.80P(2)(a)(i) vis-à-vis deduction of interest income. However, the ld.CIT(A) allowed the claim of the assessee u/s.80P(2)(d) with respect to the interest earned from co-operative banks…

Koodali Public Servants Co-Op Society Limited No C 924, Mattanur vs. Income Tax Officer, Kannur

In the result, the appeal filed by the assessee is allowed

Bench: Shri Inturi Rama Rao, Am Assessment Year: 2017-18 Koodali Public Servants Co-Op Society Ltd. Matannur P.O., Kannur 670702 [Pan: Aabak8429K] .......... Appellant Vs. The Income Tax Officer Ward -3, Kannur .......... Respondent Appellant By: ------- None ------- Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 09.12.2024 Date Of Pronouncement: 09.12.2024 O R D E R This Appeal Filed By The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi [Cit(A)] Dated 15.02.2024 For Assessment Year (Ay) 2017-18. 2. Brief Facts Of The Case Are That The Assessee Is A Co-Operative Society Formed For Providing Credit Facilities To Its Members. The Assessee Filed Its Return Of Income For Ay 2017-18 On 08.02.2018 Declaring Total Income At Nil After Claiming Deduction Of Rs. 40,95,091/- U/S. 80P Of The Income Tax Act, 1961 (The Act). The Ao Completed The Assessment At A Total Income Of Rs. 40.45,090/- By Denying The Deduction U/S. 80P(2)(D) Of The Act In Respect Of Interest Income Earned From Kannur District Co-Operative Bank.

…ghtly made in assessee’s hand. 7. I notice that the issue related to interest income received from the District Co-operative bank stands settled by Hon'ble Jurisdictional High Court’s decision in the case of PCIT v. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) wherein their Lordships have rejected the Revenue’s identical stand as under: - “12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub-sections and clauses. The Parliament has considered the various situations in which the exigible income and the deductable income o…

Kadalumdi Service Co-Operative Bank, Kadalundi vs. ITO, Ward-2(3), Kozhikode

In the result, the appeal filed by the assessee is allowed for statistical purposes as indicated above

Bench: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

…in respect of other business income. The learned Counsel for the assessee strongly relied upon the judgment of the Hon’ble Kerala High Court in the case of PCIT v. Peroorkada Service Co-operative Bank Ltd.and Vilappil Service Co-operative Bank Ltd.reported in 442 ITR 141 (Ker.). The assessee also relied upon the judgment of the Hon’ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. reported in 431 ITR 1 (SC). 5 The learned Departmental Representative relied upon the orders of the authorities below. 6. After hearing the parties, we are of the considered view that the assessee is entitled fo…

Uzhuva Service Co-Operative Bank Ltd, Pattanakkad vs. ITO, Ward-4, Alappuzha

Appeal is allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singhuzhuva Service Co-Op. Bank The Income Tax Officer Ltd. Pattanakkad P.O. Vs. Ward - 4, Alappuzha 685531 Alappuzha Pan: Aaaau3986B (Respondent) (Appellant)

…r as the assessee's claim qua its impugned income derived from a co- operative bank is concerned, we indeed have the benefit of the benefit of the hon'ble jurisdictional high court's detailed judgement in Pr. CIT vs. Peroorkada Service Co-op. Bank Ltd. (2022) 442 ITR 141 (Ker) having rejected the Revenue's identical arguments That being the case, we accept the assessee's impugned section 80P 23 Uzhuva Service Co-op. Bank Ltd. deduction claim in principle and leave it open for the learned Assessing Officer to verify all necessary facts in the foregoing terms as per law. 6. Learned DR lastly submits that the ass…

The Tirurangadi Service Co-Operative Bank Ltd, Tirurangadi vs. ITO, Ward-3, Tirur

Appeal is allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…the interest income derived from deposits made in cooperative bank does not qualify for the impugned deduction. 5. We find in this factual backdrop that hon'ble jurisdictional high court’s latest decision in PCIT v. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) has already rejected the Revenue’s very stand reading as under : - “12.2. Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub-sections and clauses. The Parliament has considered the various situations in which the exigible income and the deductable income of the asses…

M/S Elankur Service Co-Operative Bank Ltd, Elankur vs. ITO, Ward No. 2, Tirur

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…r.CIT & Anr. v. Totagars Co-operative Sale Society reported in (2017) 395 ITR 611 (Kar.), such an interest income has to be treated as income from “other” sources only. We note that the hon’ble jurisdictional high court in Pr.CIT v. Peroorkada SCB Ltd. [2022] 442 ITR 141 (Ker) has already decided the instant issue in assessee’s favour and against the Revenue, as under:- “12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub-sections and clauses. The Parliament has considered the various situations in which the exigible income and the ded…

M/S Elankur Service Co-Operative Bank Ltd, Elankur vs. ACIT, Circle 1, Tirur

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…r.CIT & Anr. v. Totagars Co-operative Sale Society reported in (2017) 395 ITR 611 (Kar.), such an interest income has to be treated as income from “other” sources only. We note that the hon’ble jurisdictional high court in Pr.CIT v. Peroorkada SCB Ltd. [2022] 442 ITR 141 (Ker) has already decided the instant issue in assessee’s favour and against the Revenue, as under:- “12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub-sections and clauses. The Parliament has considered the various situations in which the exigible income and the ded…

The Trivandrum Govt.Employees Co-Op. Society Ltd, Trivandrum vs. The Additional Joint Deputy Assistant, Commissioner of Income Tax, Trivandrum

Appeal is partly allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…. Totagars Co-operative Sales Society reported in (2017) 395 ITR 611 (Kar.) that such an income could not be held as regular business income. We find that hon’ble jurisdictional high court in recent decision PCIT v. Peroorkada Service Co- op. Bank Ltd. [2022] 442 ITR 141 (Ker) has rejected the Revenue’s identical stand as under: - “12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub- sections and clauses. The Parliament has considered the various situations in which the exigible income and the deductable income of the assessee is consi…

Mallappally Service Co-Operative Bank Ltd, No A 155, Pathanamthitta vs. ITO, Ward-1& Tps, Thiruvalla

Appeals are allowed as indicated above

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER And SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA.No.326/Coch/2024 Assessment Year 2016-2017 Mallappally Service Co- operative Bank Limited The Income Tax Officer No.A-155, Keezhuvaipur Ward 1 & TPS vs. P.O. Pathanamthitta Thiruvalla, PIN – 689 587. Pathanamthitta. PAN AAAAT5956D. (Appellant) (Respondent) Assessee by : Shri K.P. Pradeep, Advocate Revenue by : Smt. V. Swarnalatha, Sr DR Date of Hearing : 23.08.2024 Date of Pronouncement : 07.11.2024 ORDER PER BENCH : This assessee’s appeal ITA No.326/Coch/2024…

Ponniam Service Co-Operative Society, Ponniam vs. ITO, Ward-2, Kannur

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singhasst.Year 2015-16 M/S. Ponniam Service Cooperative Ito, Ward-2, Bank Ltd., V. Kannur Ponniam Service Cooperative Society, Kadirur, Ponniam, Thalassery, Kannur, Kerala - 670641 Pan : Aadap2107P (Appellant) (Respondent) Appellant By : Sri Arun Raj S, Advocate Respondent By : Smt.V.Swarnalatha, Sr.Dr Date Of Pronouncement : 07.11. 2024 Date Of Hearing : 14.08.2024 O R D E R Per Bench : This Assessee’S Appeal In Ita No.239/Coch/2024 For Assessment Year 2015-16 Arises Out Of The Order Of The Commissioner Of Income-Tax (Appeals) / Nfac Vide Din & Order No.Itba/Apl/S/250/2023-24/1060785594(1) Dated 12.02.2024, In Proceedings U/S.250 Of The Income-Tax Act, 1961; In Short “The Act” Hereinafter.

…mpugned disallowance deserves to be upheld. 4. We notice in this background that the very issue stands adjudicated in hon'ble jurisdictional high court’s recent decision in ITA No. 323 of 2019 in the case of PCIT v. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) has rejected the Revenue’s identical stand as under: - “12.2 Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub- sections and clauses. The Parliament has considered the various situations in which the exigible income and the deductable income of the assessee is consi…

The Kattappana Service Co-Operative Bank Ltd., Idukki vs. The Income Tax Officer, Ward-1, Thodupuzha

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…we find in this factual background that the instant issue is no more res integra in light of the hon’ble jurisdictional high court’s recent judgment 3 ITA No.705/Coch/2023 & SA No.159/Coch/2023. The Kattappana SCB Ltd. in Pr.CIT v. Peroorkada SCB Ltd. [2022] 442 ITR 141 (Ker) having accepted the issue in assessee’s favour, as under:- “12.2 Section 80P deals with co-operative societies' computation of income. As already noted, it has four sub- sections and several clauses and sub-clauses. Parliament has considered the various situations in which the exigible income and the deductible income of the assessee is co…

The Teekoy Service Co-Operative Bank Ltd., Kottayam vs. Income Tax Officer, Kottayam

Appeal is allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…tive bank(s) could not be treated as it’s regular business income so as to be eligible for the impugned sec.80P deduction which could hardly dispute that hon’ble jurisdictional high court’s recent decision in PCIT v. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) has settled the very issue in assessee’s favour therby concluding that such interest income derived from cooperative bank(s) and similar other institution(s) indeed qualifies for the impugned deduction. 5. The Revenue’s third vehement contention is that the assessee had already violated the relevant cap regarding loans extended to agricult…

Ramapuram North Aiswarya Pradayini Scb Ltd, Alappuzha vs. The ITO Ward 3, Alappuzha

In the result, the appeals filed by the appellant are allowed and the order(s) of the Kerala High Court and other authorities to the contrary are set aside

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singhassessment Year 2017-18 Ramapuram North Aiswarya Pradayini Scb Ltd. Ramapuram North, The Income Tax Officer Vs. Keerikadu P.O., Alappuzha Ward - 3, Pin - 690508 Alappuzha Pan Aacar2023D (Appellant) (Respondent)

…warya Pradayini SCB Ltd. and submitted that the impugned disallowance has been rightly made in assessee’s hand. 7. We find in this factual backdrop that hon'ble jurisdictional high court’s latest decision in PCIT v. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) has already settled the issue in assessee’s favour and against the department as under : - “12.2. Section 80P deals with Co-operative Societies' computation of income. As already noted, it has four sections and several sub- sections and clauses. The Parliament has considered the various situations in which the exigible income and the deduc…

The Thrikkovil Vattom Panchayath Service Co-Op Bank Ltd, Kollam vs. ITO, Kollam

Appeal is allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…ar as the assessee’s claim qua its impugned income derived from a co-operative bank is concerned, we indeed have the benefit of the benefit of the hon'ble jurisdictional high court’s detailed judgement in Pr. CIT vs. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) having rejected the Revenue’s identical arguments. That being the case we accept the assessee’s impugned section 80P deduction claim in principle and leave it open for the learned Assessing Officer to verify all necessary facts in the foregoing terms as per law. 6. Learned DR’s last vehement submission is that the assessee herein has not e…

M/S Poyiloor Service Co-Op Bank Ltd, Kannur vs. ITO Ward 2, Kannur

In the result, the appeals filed by the appellant are allowed and the order(s) of the Kerala High Court and other authorities to the contrary are set aside

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singhassessment Year - 2014-15 Poyiloor Service Co-Op.Bank The Income Tax Officer-2, Kannothumchal Ltd., Poyiloor Post, Kannur. Vs. Pin – 670002 Pan Aacap8990R Kannur - 670 006 (Respondent) (Appellant)

…ar as the assessee’s claim qua its impugned income derived from a co-operative bank is concerned, we indeed have the benefit of the benefit of the hon'ble jurisdictional high court’s detailed judgement in Pr. CIT vs. Peroorkada Service Co-op. Bank Ltd. [2022] 442 ITR 141 (Ker) having rejected the Revenue’s identical arguments. 6. Learned DR’s last argument is that assessee has not complied with the relevant statutory norms in extending credit facilities to sectors other than agricultural loans. We find that case law Mavilayi Service Cooperative Bank Ltd., vs. CIT [2021] 431 ITR 1 (SC) has already rejected the Re…