Appeal dismissed by ITAT Cochin upholding denial of Sec 80P(2)(i)(a) benefit for AY 2010-11

The appeal was dismissed by the ITAT Cochin, upholding the CIT(A)'s denial of benefit u/s 80P(2)(i)(a) of the Income Tax Act for the assessment year 2010-11. The Tribunal's decision was based on consistency with previous orders regarding the exclusion of cooperative banks from this deduction. The assessee's argument based on RBI certification was rejected, and the appeal was dismissed on November 2, 2015.

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Issues:
Denial of benefit u/s 80P(2)(i)(a) of the Income Tax Act, 1961.

Analysis:
The appeal in question was against the CIT(A)'s order denying the benefit u/s 80P(2)(i)(a) of the Income Tax Act for the assessment year 2010-11. The assessee, a cooperative society engaged in banking business, had its deduction u/s 80P denied by the AO due to the insertion of sub.sec (4) to sec. 80P w.e.f 1.4.2007, which excluded cooperative banks from this benefit. The CIT(A) upheld the denial of deduction based on previous Tribunal decisions related to similar cases. The assessee argued that the determination of being a cooperative bank or society should rely on RBI certification, citing a Karnataka High Court judgment. However, the ITAT Cochin upheld the CIT(A)'s decision, following previous Tribunal orders, and dismissed the appeal, maintaining consistency pending an appeal u/s 260A before the High Court.

The Tribunal's decision was based on the consistency with previous Tribunal orders regarding the denial of deduction u/s 80P for cooperative banks. The assessee's argument regarding RBI certification was not accepted, and the Tribunal upheld the CIT(A)'s decision. The appeal was dismissed, and the order was pronounced on November 2, 2015.

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