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2023 (11) TMI 328 - ITAT COCHINRectification application u/s 254 - Deduction of interest income u/s 80P(2) - reliance on Full bench decision to pass orders - Tribunal had regarded the interest income on deposits with other co-operative banks or treasuries as part of the assessee’s business of provision of credit to its members and, therefore, deductible u/s.80P(1) r/w s. 80P(2)(a)(i) - HELD THAT:- Revenue’s MA is not maintainable. No ‘mistake’ of fact/s or of law, has been pointed out and, in fact, both the stated grounds are incorrect. Tribunal has decided the appeal under reference not by, as claimed, following it’s earlier order in Kizhathadiyoor Service Co-operative Bank Ltd. [2016 (7) TMI 1405 - ITAT COCHIN] but by the Full Bench of the Hon’ble jurisdictional High Court in CIT v. Mavilayi Service Co-operative Bank Ltd. [2019 (3) TMI 1580 - KERALA HIGH COURT] In fact, having found the same as laying the law in the matter, it has directed the 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 so, is in agreement with the later binding decision in Pr. CIT v. Peroorkadda SCB Ltd. [2021 (12) TMI 1084 - KERALA HIGH COURT] No case for interference qua the impugned order is accordingly made out. It is nevertheless open for the assessee to, if so advised, contest the AO’s order in the set aside proceedings where and to the extent it is found by it inconsistent with the latest decision by the Hon’ble Apex Court in Mavilayi Service Co-operative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT] MA dismissed.
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