Thottathil B.radhakrishnan, J v. Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE THOTTATHIL B.RADHAKRISHNAN & THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN TUESDAY, THE 18TH DAY OF OCTOBER 2016/26TH ASWINA, 1938 ITA.No. 65 of 2016 () ---------------------- AGAINST THE ORDER/JUDGMENT IN ITA 58/COCH/2015 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 03-11-2015 APPELLANT(S):/RESPONDENT/ASSESSEE------------ THE POONJAR SERVICE CO-OPERATIVE BANK LTD., POONJAR, KOTTAYAM - 686 681, REPRESENTED BY ITS SECRETARY. BY ADVS.SRI.A.KUMAR SRI.P.J.ANILKUMAR SMT.G.MINI(1748) SRI.P.S.SREEPRASAD RESPONDENT(S):/APPELLANT/REVENUE -------------- COMMISSIONER OF INCOME TAX, KOTTAYAM - 686 001. R1 BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) R1 BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 18-10-2016, ALONG WITH ITA. 66 AND 72 OF 2016, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: ITA65/16 APPENDIX THOTTATHIL B.RADHAKRISHNAN & DEVAN RAMACHANDRAN, JJ.DEVAN RAMACHANDRAN, JJ. .................................................................... ITA Nos.65, 66 & 72 of 2016 .................................................................... Dated this the 18[th] day of October, 2016. J U D G M E N T Thottathil B.Radhakrishnan, J. 1.We have heard the learned counsel for the appellants/assesseesand the learned Senior standing counsel for the Income TaxDepartment, in all the three appeals.and the learned Senior standing counsel for the Income TaxDepartment, in all the three appeals. 2.Learned counsel for the appellants submits that the issuerelatable to the applicability of Section 80P of the Income Tax Act,1961 to the appellants is covered by the decision of this Court inChirakkal Service Co-operative Bank Limitedv. Commissioner ofIncome Tax[2016(2) KLT 535]. He further points out that circularNo.18/2015 dated 02.11.2015 is sufficient enough to answer theissues raised in relation to 'income from other sources' and'profits and gains of business' as covered by questions of law ‘B’and ‘C’ . Having bestowed our anxious consideration to the submissions ofthe learned counsel for the appellants vis-à-vis the submissionsof the learned Senior standing counsel for the Department, whosaid that all the issues appear to be intricately connectedinasmuch as the questions under Section 80P can also beconsidered only in the light of the question whether interestderived by the society is income from other sources, we are of theview that it is necessary that the Tribunal re-considers all theissues arising for decision in these appeals, in particular, theapplicability of circular No.18/2015 dated 02.11.2015 and thequestion of applicability of the ratio of the decision in ChirakkalService Co-operative Bank Limited (supra) as to the effect ofSection 80P of the Income Tax Act on the appellants. To enable acomprehensive consideration by the Income Tax AppellateTribunal of all the issues arising for decision in these appeals, inthe appeals before the Tribunal, in the light of what we havestated above, the impugned orders of the Tribunal are vacatedand the cases are remitted to the Tribunal for re-consideration. ITA 65,66&72/16 Parties are directed to mark appearance before the Tribunal on15.11.2016. These income tax appeals are ordered accordingly. (THOTTATHIL B.RADHAKRISHNAN, JUDGE) jg-18/10 (DEVAN RAMACHANDRAN, JUDGE)