Kerala High Court
The Principal Commissioner Of Income ... vs M/S The Purameri Service Co-Operative ... on 20 May, 2016
Author: Thottathil B.Radhakrishnan
Bench: Thottathil B.Radhakrishnan
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE THOTTATHIL B.RADHAKRISHNAN
&
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
FRIDAY, THE 11TH DAY OF NOVEMBER 2016/20TH KARTHIKA, 1938
ITA.No. 119 of 2016
-----------------------
AGAINST THE ORDER IN ITA 548/2014 of
I.T.A.TRIBUNAL,COCHIN BENCH, DATED 20-05-2016
APPELLANT/RESPONDENT/RESPONDENT/REVENUE :
-------------------------------------------
THE PRINCIPAL COMMISSIONER OF INCOME TAX
KOZHIKODE.
BY ADVS.SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPT.
SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT
RESPONDENT/APPELLANT/APPELLANT/ASSESSEE :
--------------------------------------------
M/S THE PURAMERI SERVICE CO-OPERATIVE BANK LTD.
PURAMERI, KOZHIKODE.
THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 11-11-2016,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
ITA.No. 119 of 2016
APPENDIX
APPELLANT'S ANNEXURES :
ANNEXURE-A : TRUE COPY OF THE ASSESSMENT ORDER DATED 17.1.2014.
ANNEXURE-B : TRUE COPY OF THE APPELLATE ORDER DATED 11.9.2014 PASSED
BY THE COMMISSIONER OF INCOME TAX (APPEALS).
ANNEXURE-C : TRUE COPY OF THE ORDER DATED 20.5.2016 PASSED BY THE
INCOME-TAX APPELLATE TRIBUNAL.
RESPONDENT'S ANNEXURES :
NIL
//TRUE COPY//
P.A.TO JUDGE
ami/
THOTTATHIL B.RADHAKRISHNAN &
DEVAN RAMACHANDRAN, JJ.
-----------------------------------------------
Income Tax Appeal No.119 of 2016
-----------------------------------------------
Dated this the 11th day of November, 2016
JUDGMENT
Thottathil B.Radhakrishnan, J.
1. We have heard the learned counsel for the Department. The issues raised in this appeal are covered by the decision of this Court in The Chirakkal Service Co-operative Bank Ltd. v. The Commissioner of Income Tax [(2016)384 ITR 490 (Ker)]. However, the learned counsel for the appellant- Department points out that in an earlier decision in Perinthalmanna Service Co-operative Bank Ltd. v. Income-Tax Officer and another [(2014) 363 ITR 268 (Ker)], the Division Bench had taken a view which is contrary to what was later taken in Chirakkal (supra). We have examined the judgment in Perinthalmanna (supra), which was rendered on 31.1.2014 by the Division Bench. The said judgment revolves on only one point that nomenclature is not decisive but the method of activity can be looked into for the Income Tax Appeal No.119/16 :-2-:
purpose of 80P(4) of the Income Tax Act. Obviously, that judgment was not brought to the notice of this Court while Chirakkal was decided on 15.2.2016. Chirakkal went into a consideration of the different provisions and the effect of registration under the Kerala Co-operative Societies Act and the impact of such registration in matters relating to different aspects including those falling under 80P(4) of the IT Act. This was decided also taking into consideration the provisions of the Banking Regulation Act. The said decision, which is later in point of time, though delivered without noticing Perinthalmanna, in our view, reasons out the conclusions therein on the basis of different statutory provisions and on a cohesive consideration of all relevant primary legislations and other guiding legal principles. However, Perinthalmanna has been decided without making reference to any of those statutory provisions and we, therefore, are of the view that the later judgment, though by a Bench of co-equal strength, has necessarily to be followed as precedent. We may also note, before parting, that the decision in Perinthalmanna was rendered issue specific on the question dealt with in paragraph Income Tax Appeal No.119/16 :-3-:
3 of that judgment, particularly the contention that the assessee succeeded before the Tribunal only on the ground that it was a Society in terms of the Kerala Co-operative Societies Act and nothing more.
For the aforesaid reasons, we follow the decision in Chirakkal and dismiss this appeal and thereby confirm the decision of the Tribunal.
Sd/-
THOTTATHIL B.RADHAKRISHNAN JUDGE Sd/-
DEVAN RAMACHANDRAN JUDGE ami/14.11.16 //True copy// P.A.to Judge