Case Law Details
Ramanthali Service Co-Operative Bank Ltd Vs ITO (Kerala High Court)
Introduction: In a recent legal development, the Kerala High Court delivered a verdict in the case of Ramanthali Service Co-Operative Bank Ltd Vs ITO. The case pertains to a rectification application filed by the Income Tax Department (ITD) under Section 254(2) of the Income Tax Act, 1961, challenging an earlier order related to the assessment years 2009-2010. The central issue in this case was the delay of six months in filing the rectification application.
Detailed Analysis:
1. Background: The petitioner, Ramanthali Service Co-Operative Bank Ltd, a co-operative society, had faced an assessment order by the assessing officer in 2011, determining a tax liability of Rs. 10,64,549. The assessing officer also initiated penalty proceedings under various sections of the Income Tax Act. Dissatisfied with this, the petitioner appealed to the first appellate authority, who dismissed the appeal in 2012. Subsequently, the petitioner filed a second appeal before the Income Tax Appellate Tribunal (ITAT), Cochin Bench.
2. ITAT’s Decision: In 2017, the ITAT delivered an order partially allowing the petitioner’s appeal. The ITAT ruled that the petitioner, being a co-operative society, was eligible for a deduction under Section 80P(2) of the Income Tax Act, 1961, and directed the assessing officer to grant the claimed deduction.
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