SIDDHI INFINITY CO OPERATIVE HOUSING SOCIETY LIMITED,MUMBAI vs. ITO - WARD 41(4)(4), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL“J(SMC)” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER ITA No. 5470/MUM/2026 (AY: 2020-21) (Physical hearing) Siddhi Infinity Co Operative Housing ITO, Ward – 41(4(4), Mumbai Society Limited vs Room No. 854D, Kautilya Bhawan, Plot No. 13, CTS No. 69, Ismaliya C-41 to C-43, G Block, Bandra Village, Natwar Nagar Road No. 1, Kurla Complex, Bandra (East), Jogeshwari (East), Mumbai - 400060 Mumbai – 400051. [PAN: AAGPN4363H] Appellant / Assessee Respondent / Revenue Assessee by Shri Ajay Singh, Advocate & Shri Akshay Pawar, Advocate Revenue by Ms. Jayshree Thakur, Sr. DR Date of hearing 04.08.2026 Date of pronouncement 04.08.2026 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of ld. CIT(A)/ADDL/JCIT(A)-3, Bangalore dated 18.03.2026 for Assessment Year (AY) 2020-21. The assessee has raised following grounds of appeal: “1. The Id. CIT(A) erred in upholding the disallowance of deduction u/s 80P(2)(d) of the Act, in regards to the interest income of Rs. 5,34,735/- received by the assessee (a Co-operative Housing society) from its fixed deposit kept with cooperative bank (NKGSB Cooperative Bank Ltd.), while making prima facie adjustment u/s. 143(1) of the Act by the CPC. 2. The Id. CIT(A) erred in upholding disallowance of the claim u/s. 80P(2)(d) of the Act without appreciating the fact that the CPC has rejected such claim u/s 143 (1) of the Act without issuing mandatory show cause notice nor assigning any reasons, therefore the action of the CPC is bad in law and the deduction ought to be allowed. 3. The Ld. CIT(A) erred in upholding the disallowance of the deduction claimed by the Appellant under section 80P(2)(d) of the Act, in respect of interest income of Rs. 12,765/- and Rs. 5,21,970/- earned on FDs and

ITA No.5470/Mum/2026 (AY: 2020-21) Siddhi Infinity Co Operative Housing Society Limited

Savings account with NKGSB Cooperative Bank Ltd, on the alleged ground that the said bank is not an Cooperative society, therefore wrongly concluding that the assessee was not eligible for deduction u/s 80P(2)(d) of the Act. 4. The Assessee craves leave to add, alter modify or delete one or more ground before or at the time of hearing of the Appeal. 2. Rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld. AR) of the assessee submits that grounds of appeal raised in the present appeal relates to deduction under section 80P(2)(d). The assessee earned interest of Rs. 12,765/- and Rs. 5,21,970/- or fixed deposits as well as savings bank account in NKGSB Cooperative Bank. In a series of decision, the Tribunal if held that co-operative banks are primary co-operative society and interest or dividend earned by assessee on such deposit is eligible for deduction under section 80P(2)(d). 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the Revenue supported the order of ld. CIT(A). The ld. Sr. DR for the Revenue submits that in para 4.1.43, the ld. CIT(A) has given a detailed reasoning while confirming disallowance. 4. We have heard the submission of both the parties and have gone through the orders of lower authorities. We find that there is no dispute on the fact that assessee earned interest of Rs. 12,765/- and Rs. 5,21,970/- fixed deposits as well as savings bank account in NKGSB Cooperative Bank. We find that grounds of appeal raised by the assessee is in fact covered by a series of decision by this Bench as well as other Co-ordinate Benches of Tribunal wherein it has been consistently held that Co-operative Banks are

ITA No.5470/Mum/2026 (AY: 2020-21) Siddhi Infinity Co Operative Housing Society Limited

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). No contrary facts or law is brought to our notice to take other view. Thus, the grounds of appeal raised by the assessee are allowed. 5. In the result, appeal filed by assessee is allowed. Order was pronounced in open court on 04/08/2026 Sd/- Sd/- JAGADISH PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

MUMBAI, Dated: 04/08/2026 Biswajit 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 3