D.b. Income Tax Appeal v. Barmer Central Co-Operative Bank

D.B. INCOME TAX APPEAL NO.90/2006(CIT Vs. Barmer Central Co-operative Bank) Date of order : 20.9.2006 HON'BLE MR. JUSTICE RAJESH BALIAHON'BLE MR. JUSTICE GOPAL KRISHAN VYAS Mr. Sangeet Lodha, for the appellant. The appellant – Commissioner of Income Taxseeks to raise following questions as substantialquestions of law arise for consideration in thisappeal : 1.“Whether on the facts and in thecircumstances of the case, the learnedITAT has erred in law in holding thatinterest accrued on deposits in KisanVikas Patra was entitled for exemptionunder Section 80P(2)(a)(i) of the IT Actthoughthisinvestmentwasnotnecessitated by virtue of any statutoryprovision or required to be made under theBanking Regulation Act, 1949 and ReserveBank of India's guidelines under which thebanks including the cooperative societiesengagedinbankingbusinessarestatutorily bound to keep part of theirdeposits in Government Securities. 2.Whether the findings recorded bythe learned Tribunal are contrary torecord and perverse ?” It has been pointed out that in respect ofthe very same assessee very same questions have beenraised in DB Income Tax Appeal No.111/2005 relating toassessment year 1996-97 whereas this appeal relates toassessment year 1997-98. The facts of the present arun appeal are otherwise not in dispute and notdistinguishable from the facts of the aforesaidappeal. The said appeal has since been decided on25.11.2005 holding that in view of the fact that theissue having been decided in view of the law laid downby Hon'ble Supreme Court in CIT Vs. Karnataka StateCo-operative Apex Bank, 251 ITR 194 over-rulling thedecision in Madhya Pradesh Co-operative Bank Ltd. Vs.Addl. Commissionr of Income Tax (1996) 218 ITR 438 onwhich the reliance was placed by the revenue. Nosubstantial questions of law can be said to arise forconsideration in this appeal. Accordingly, this appeal also fails and ishereby dismissed. (GOPAL KRISHAN VYAS), J. (RAJESH BALIA), J.