COMMISSIONER OF INCOME-TAX VS RAMANATHAPURAM DISTRICT COOPERATIVE CENTRAL BANK LTD.
2004 P T D 2172
[255 I T R 423]
[Supreme Court of Indiq]
Present: S. P. Bharucha, Y. K. Sabharwal and Brijesh Kumar, JJ
COMMISSIONER OF INCOME‑TAX
Versus
RAMANATHAPURAM DISTRICT COOPERATIVE CENTRAL BANK LTD.
Civil Appeals Nos.4477 to 4479 of 1998, decided on /01/.
th
October 2001. (Appeals by special leave from the judgment and order. dated February 21, 1997, of the Madras High Court in‑Tax Cases Nos. 1813 to 1815 of 1984).
Income‑tax‑--------
‑‑‑‑Special deduction‑‑Cooperative‑Society Banking business‑‑‑Interest on securities‑‑‑Subsidies from Government‑‑‑Dividend‑‑‑Are business income‑‑‑Deduction available‑‑‑Supreme Court‑‑‑Earlier decisions on these points‑‑‑Do not require reconsideration‑‑Indian Income Tax Act, 1961, S.80P(2)(a)(i).
Held, that (i) interest on securities, (ii) subsidies from the Government, and (iii) dividend received by the assessee, a cooperative society carrying on banking business, were business income of the assessee, and the assessee was entitled to deduction under section 80P(2)(a)(i) of the Income Tax Act, 19.61, in respect thereof.
CIT v. Karnataka State Cooperative Apex Bank (2001) 251 ITR 194 (SC) and Mehsana District Central Cooperative Bank Ltd. v. ITO (2001) 251 ITR 522 (SC) fol.
Held also, that CIT v. Karnataka State Cooperative Apex Bank (2001) 251 ITR 194 (SC) and Mehsana District Central Cooperative Bank Ltd. v. ITO (2001) 251 ITR 522 (SC) are correctly decided.
United Commercial Bank Ltd. v. CIT (1957) 32 ITR 688 (SC) ref.
At the instance of the Revenue, the Appellate Tribunal has stated a case and referred the following common question of law under section 256(1) of the Income Tax Act, 1961, for the assessment years 1977‑78, 1978‑79 and 1979‑80 for the opinion of this Court:
"Whether, on the facts and in the, circumstances of, the case, the Appellate Tribunal was correct in law in. holding that the interest on securities, subsidies received from the Government and dividend business income of the assessee entitled to deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961?"
Three assessment years are involved in these cases. The common question that arises is whether (i) interest on securities, (ii) subsidies received from Government; and (iii) dividend income received should be regarded as business income and whether the assessee is entitled to deduction under section 80P(2)(a)(i) of the Act. A similar question came tip for consideration before this Court in the case of another cooperative society in the case of CIT v. Madurai District Central Cooperative Bank Ltd. (1984) 148 ITR 196, wherein this Court has held that the assessee would be entitled to exemption under section 80P(2)(a)(i) of the Act in respect of the Interest on securities as well as subsidies. Insofar as the dividend is concerned, this Court has followed the decision of this Court in Madurai District Central Cooperative Bank's case (1984) 148 ITR 196 (Mad.) in the judgment in T.C. Nos.1153 and 1154 of 1982; dated January 10, 1996, (CIT v. Ramanathapuram District Central Cooperative Bank Ltd. (1997) 224 ITR 226) and this Court in the said unreported judgment since reported in (1997) 224 ITR 226‑‑‑held that the principle laid down in Madurai District Central Cooperative Bank's case (1994) 148 ITR 196 (Mad) would apply to the dividend income also. Following the above decision of this Court, we answer the question referred to us in the affirmative and against the Department. No cots.
R.P. Bhatt, Senior Advocate (Preetesh Kapur, B. V. Balram Das and Ms. Sushma Suri, Advocates with him) for Appellant.
R. Venkataraman, Senior Advocate (V. Prabhakar and. Ms Revathy Raghavan, Advocates with him) for Respondent.
ORDER
The High Court has answered against he Revenue, the following question:
"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the interest on securities, subsidies received from the Government and dividend business income of the assessee entitled to deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961?"
The very question was considered by this Court in CIT v. Karnataka State Cooperative Apex Bank (2001) 251 ITR 194 and the conclusion was reiterated in Mehsana District Central Cooperative Bank Ltd. v. ITO (2001) 251 ITR 522 (SC).
It is now contended on behalf of the Revenue that the decision of this Court in United Commercial Bank Ltd. v. CIT (1957) 32 ITR 688 was not considered.
We do not think that it is open to the Revenue to urge, through different counsel, the same thing again and again. We are satisfied that the answer to the question has been, correctly given in the decisions aforementioned and in the order under appeal:‑
The civil appeals are dismissed with costs
M.B.A./1111/FCAppeals dismissed