2023 (11) TMI 328

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ear (AY) 2015-16. 2.1 The MA raises the following grounds: "1. This Miscellaneous Petition is filed in the case of Hon'ble Income 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....80P(2)(a)(i). In Kizhathadiyoor Service Co-operative Bank Ltd. (ITA No.525/Coch/2014, dated 20.07.2016), relied upon by it, interest on investments in co-operative banks 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 activit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....laying the law in the matter, it has directed the Assessing Officer (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 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....