TMI Blog2022 (5) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... c, can be adjusted. The issue whether the assessee is eligible for deduction u/s 80P of the I.T.Act is not a matter that can come within the ambit of prima facie adjustment authorised u/s 143(1) of the I.T.Act. The CIT(A) in the impugned orders have mentioned that the issue of deduction u/s 80P of the I.T.Act is highly debatable, however, he has not gone to the extent of holding that the prima facie adjustment in 143(1) disallowing deduction u/s 80P of the I.T.Act was not permissible. The disallowance of the claim u/s 80P in the intimation is not in accordance with law and hence a mistake apparent on the records. When the CPC made a prima facie adjustment in the intimation disallowing partially the claim u/s 80P of the I.T.Act, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Decided in favour of assessee. - ITA No.241/Coch/2021 And ITA No.245/Coch/2021 And ITA No.246/Coch/2021 - - - Dated:- 23-5-2022 - Shri George George K, JM And Shri Laxmi Prasad Sahu, AM For the Appellant : Sri. G Surendranath Rao, CA For the Respondent : Smt. J.M. Jamunna Devi, Sr.DR ORDER PER BENCH : These appeals at the instance of the assessee are directed against three orders of the CIT(A), all dated 11.10.2021 The relevant assessment years are 2013-2014 to 2015-2016. 2. Common issues are raised in these appeals, hence, they were heard together and are being disposed of by this consolidated order. Identical grounds are raised in all these appeals, except for variance in figures. The grounds relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad interest from Kannur District Co-operative Bank Ltd., amounting to Rs.1,13,8601-, which as the name implies is a society registered under Kerala Co-operative Societies Act 1969. After such formation, the society had obtained a license from Reserve Bank of India to carryon banking business. Exemption was claimed u/s 80P on this amount. There was no justification for the Assessing Authority to disallow the claim in the intimation u/s 143(1) as a prima facie adjustment. The Assessing Authority should have known that the interest received by a co-operative society from another co-operative society is exempt from income tax without any condition or limit u/s 80P(2)(d) of the Income Tax Act. The disallowance of the claim was hence without any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification petition u/s 154 of the I.T.Act and not the intimation u/s 143(1) of the I.T.Act. The CIT(A) further held that the issue of deduction u/s 80P of the I.T.Act is a debatable one and hence beyond the scope of section 154 of the I.T.Act. 6. Aggrieved by the orders of the CIT(A), the assessee has filed the present appeals before the Tribunal. The learned AR submitted that the denial of deduction u/s 80P of the I.T.Act is beyond the scope of adjustments provided u/s 143(1) of the I.T.Act. Further on merits, the learned AR relied on the judgment of the Hon ble jurisdictional High Court in the case of Kallara Village Service Co-operative Bank Ltd. No.3123 in WP(C) No.9415 of 2019 (judgment dated 18.10.2019). 7. The learned Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iated that, an order refusing to rectify a mistake is an appealable order u/s 246 of the I.T.Act and the hence the Commissioner (Appeals) has erred in dismissing the appeal on the grounds that the appeal should have been filed against the intimation and not the order u/s 154 of the I.T.Act. 8.1 Without prejudice to the above conclusion, we are of the view that the interest received by a cooperative society from any other co-operative society is exempt from tax without any condition as per the provisions of section 80P(2)(d). Admittedly, the assessee during the relevant assessment years had only interest from The Kannur District Co-operative Bank Ltd. The Hon ble Kerala High Court in Kallara Service Co-operative Bank Ltd, Kottayam and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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