SYMPHONY CHS LTD,MUMBAI vs. ADDL/JCIT (A)-3, BENGALURU

PER PAWAN SINGH, JUDICIAL MEMBER; 1. These two appeals by the assessee are directed against the order passed by the CIT(A) both dated 27.03.2026 for A.Y. 2020-21 & 2021-22. Though, in both the appeals the assessee has raised multiple grounds of appeal, however, in our considered view, the substantial ground of appeal relates to disallowance under section 80P(2)(d). In AY 2020-21, the assessing officer (AO) / Central Processing Centre (CPC) disallowed Rs.11,07,110/- and in AY 2021-22 Rs. 10,83,000/-. As facts in both the years are similar, therefore, with the consent of both the parties, both the appeals were clubbed heard together and are decided by common order. 2. Rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld.AR) of the assessee submits that the

Symphony CHS Ltd. ITA Nos. 6781&7102/Mum/2026 (AY 2020-21& 2021-22) assessee claimed deduction of Rs.11,07,110/- in AY 2020-21 and Rs. 10,83,000/- in AY 2021-22 under section 80P(2)(d) of the Act on account of interest received from co-operative banks. The return was processed by Central Processing Centre (CPC) and made adjustment/ disallowed such deduction. The ld. AR of the assessee submits that in a series of decision by this bench, it has been consistently held that co-operative banks are primarily a co-operative society and the interest received from such co-operative bank are eligible for deduction under section 80P(2)(d) to support its submission. The ld. AR of the assessee submits that ld. CIT(A) dismissed the appeal of assessee for one more ground by taking view that there was delay in filing appeal before him. In fact, the assessee filed appeal against the order passed under section 154 on 15.12.2022. The first appeal was filed on 16.02.2026. The ld. AR submits that assessee has filed application for condonation of delay before ld. CIT(A) which was not considered sympathetically. The assessee society was facing difficulty in finding out of outcome of application under section 154 pending before CPC. There is no intentional delay in filing appeal belatedly. The assessee is a co-operative society and is not going to be benefitted by filing appeal belatedly. The assessee has good case on merit and likely to succeed if the case is considered on merit. The ld. AR of the assessee prayed for condonation of delay in filing appeal before ld. CIT(A) and the order of ld. CIT(A) in rejecting the condonation of delay may be set aside. 3. On the other hand, learned senior departmental representative (Sr. DR) for the Revenue supported the order of lower authorities. On the delay, the ld. Sr. DR for 2

Symphony CHS Ltd. ITA Nos. 6781&7102/Mum/2026 (AY 2020-21& 2021-22) the Revenue submits that delay is not properly explained before ld. CIT(A). The delay before ld. CIT(A) may not be condoned. 4. We have considered the submissions of both the parties and have gone through the orders of lower authorities. Firstly, we are considering the issue of condonation of delay in filing appeal before ld. CIT(A). Though we find that there is delay of about 3 years in filing appeal before ld. CIT(A), which has not been explained properly yet keeping in view the principles of natural justice and the fact that assessee is a co-operative society, thus, keeping in view, the law on limitation that when technical consideration and cause of substantial justice are kept against each other, the cause of substantial justice may be preferred. Hence, the delay in filing appeal before ld. CIT(A) is condoned. 5. We find that there is similar delay in filing appeal before ld. CIT(A) in A.Y. 2021- 22. The same is also condoned with similar observation. Now, adverting to merits of the case. 6. We find that assessee has received following interest income from various banks: A.Y. 2020-21 1. Interest from SBI Rs. 16,417/- 2. Interest from Mumbai District Central Co-operative Rs. 10,90,695/- Bank Total: 11,07,112/- A.Y. 2021-22 1. Interest from SBI Rs. 16,529/- 2. Interest from Mumbai District Central Co-operative Rs. 11,16,475/- Bank & TJSB Sahakari Bank Total: 11,33,004/-

Symphony CHS Ltd. ITA Nos. 6781&7102/Mum/2026 (AY 2020-21& 2021-22) Co-operative Banks are primarily co-operative society and the interest or dividend earned from such Co-operative Bank are eligible for deduction under section 80P(2)(d). Similar View was taken by Gujarat High Court in Gujarat High Court in the case of Surat Vankar Sahakari Sangh Ltd. (2016) 72 taxmann.com 169; Allahabad High Court in the case of U.P. Cooperative Sugar Factories (2013) 17 taxmann.com 58; Punjab Haryana High Court in the case of Haryana Co- operative Sugar Mills Ltd. (1989) 46 Taxman 28 and Pune Tribunal in Niphad Nagari Sahakari Pata Sanstha Ltd. in ITA No. 1336/PN/2011 and in CIT ITO V Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha (ITA No. 5006/2013)(Karnataka HC). However, the assessee has also shown interest income from State Bank of India that is a sum of Rs. 16,417/- in A.Y. 2020-21 & Rs. 16.529/- in A.Y. 2021-22, which is not earned either from assessee’s activity or investment with co-operative society / bank. The same is not qualified for deduction under section 80P(2)(d). Thus, the grounds of appeal raised by assessee in both the years are partly allowed. No contrary facts or law is brought to our notice to take other view. Thus, the grounds of appeals raised by the assessee in both the years are allowed. 8. In the result, both the appeals raised by the assessee are partly allowed. Order pronounced in the open Court on 13/08/2026 at the time of hearing. /- SSd/-- S SS/- Sd/-- d/- JAGADISH PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 13/08/2026 Biswajit 4

Symphony CHS Ltd. ITA Nos. 6781&7102/Mum/2026 (AY 2020-21& 2021-22)

Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai