Kalliad Service Co-operative Bank Limited Vs ITO (ITAT Cochin)
Income Tax Appellate Tribunal (ITAT), Cochin Bench, has allowed the appeal filed by Kalliad Service Co-operative Bank Limited against the order of the National Faceless Assessment Centre, pertaining to the assessment year 2017-2018. The case primarily concerned the denial of deduction claimed under Section 80P of the Income-tax Act, 1961.
Kalliad Service Co-operative Bank, a co-operative society registered under the Kerala Co-operative Societies Act, functions with the objective of providing financial accommodation to its members for agricultural purposes. For the assessment year 2017-2018, the bank filed its return of income on January 18, 2018, declaring ‘Nil’ income after claiming a deduction of Rs. 16,48,770 under Section 80P of the Act.
The Assessing Officer (AO) completed the assessment on December 24, 2019, under Section 143(3) of the Act, determining the total income at Rs. 16,48,770. This was achieved by denying the bank’s claim for deduction under Section 80P, with the AO relying on the provisions of sub-section (4) of Section 80P.
Aggrieved by the assessment order, the assessee appealed to the Commissioner of Income-tax (Appeals) [CIT(A)], who subsequently upheld the AO’s decision. This prompted the bank to file an appeal before the ITAT Cochin.
