Grounds Not Arising from Subject Matter of CIT(A)'s Order Not Maintainable: ITAT dismisses Appeal [Read Order]
The tribunal held that the grounds raised before it neither arose from the order of the CIT(A) nor formed the subject matter of appeal before the CIT(A).
![Grounds Not Arising from Subject Matter of CIT(A)s Order Not Maintainable: ITAT dismisses Appeal [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/appeal-CITA-taxscan.jpg "Grounds Not Arising from Subject Matter of CIT(A)s Order Not Maintainable: ITAT dismisses Appeal [Read Order]")
The Cochin Bench of the Income Tax Appellate Tribunal (ITAT) dismissed the appeal holding that grounds of appeal not arising from subject matter of order of the Commissioner of Income Tax (Appeals) [CIT(A)] were not maintainable. Vellanikkara Service Co-op. Bank Ltd (assessee), a primary agricultural co-operative society registered under the Kerala State Co-operative Societies Act, 1969....
The Cochin Bench of the Income Tax Appellate Tribunal (ITAT) dismissed the appeal holding that grounds of appeal not arising from subject matter of order of the Commissioner of Income Tax (Appeals) [CIT(A)] were not maintainable.
Vellanikkara Service Co-op. Bank Ltd (assessee), a primary agricultural co-operative society registered under the Kerala State Co-operative Societies Act, 1969. The assessee had filed a return of income for the Assessment Year (AY) 2018-2019.
The assessee declared ‘Nil’ income after claiming deduction of Rs. 3,99,21,348 under Section 80P of the Income Tax Act, 1961. The AO completed assessment determining total income at Rs. 4,11,71,348 denying the deduction under Section 80P of the Income Tax Act.
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Aggrieved by the order of AO, the assessee filed an appeal before the CIT(A). The CIT(A) allowed the deduction under Section 80P following the judgment of the Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT. However, the CIT(A) restricted the claim in respect of income derived from services rendered to non-members.
Aggrieved by the order of CIT(A), the assessee filed an appeal before the ITAT. The assessee challenged an addition of ₹12,50,000 made under Section 40A(7) of the Income Tax Act on account of provision for gratuity.
The assessee submitted that the said amount had already been disallowed in the return under Section 36(1)(viii), and thus no further disallowance was warranted. The assessee contended that the computation statement, ITR, and statutory audit report substantiated the voluntary disallowance.
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The Single Member Bench comprising Inturi Rama Rao (Accountant Member) held that the grounds raised before it neither arose from the order of the CIT(A) nor formed the subject matter of appeal before the CIT(A).
The tribunal held that the grounds were not maintainable as it did not arise from subject matter of CIT(A)’s order. The Tribunal dismissed the grounds of appeal as not maintainable. The appeal of the assessee was dismissed.
To Read the full text of the Order CLICK HERE
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