RAJGIR CHAMBERS C OP HSG,MUMBAI vs. INCOME TAX OFFICER, MUMNBAI

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ITA 3037/MUM/2026Status: DisposedITAT Mumbai13 July 2026AY 2019-203 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 80P(4) excludes co-operative banks from claiming deduction, but it does not prevent other co-operative societies from claiming deduction on interest income earned from co-operative banks. Therefore, the deduction is allowable.

What were the facts?

The assessee, a co-operative housing society, claimed deduction under Section 80P(2)(d) on interest income earned from a co-operative bank. The lower authorities denied this deduction.

What were the issues?

Whether interest income earned by a co-operative housing society from a co-operative bank is eligible for deduction under Section 80P(2)(d) despite Section 80P(4) excluding co-operative banks.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d),Section 80P(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “J (SMC

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI MAKARAND VASANT MAHADEOKAR

For Appellant: Ms. Mansi Chatwani, CA
For Respondent: Ms. Jayshree Thakur, SR. D.R
Hearing: 13.07.2026Pronounced: 13.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “J (SMC)”, MUMBAI

BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER And SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER

ITA No. 3037/M/2026 Assessment Year: 2019-20

Rajgir Chambers Co-OP HSG, Income Tax Officer, Plot no.-12/14, Rajgir Ward 26 (1)(1), Chambers, Shahid Bhagat Singh Room no. 303, Kautilya Vs. Road, Fort, Mumbai, Bhavan, Bandra Kurla Maharashtra 400001. Complex, Bandra (East), PAN – AAABR0206M Mumbai, Maharashtra - 400050 (Appellant) (Respondent) Present for: Assessee by : Ms. Mansi Chatwani, CA Revenue by : Ms. Jayshree Thakur, SR. D.R.

Date of Hearing : 13.07.2026 Date of Pronouncement : 13.07.2026

O R D E R Per : Narender Kumar Choudhry, Judicial Member:

This appeal has been preferred by the Assessee against the order dated 06.12.2023, impugned herein, passed by the Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT (A)-1 Lucknow (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2019-20.

2 ITA No.3037/M/2026 Rajgir Chambers C OP HSG,

2.

Considering the reasons for the delay, duly supported by the relevant medical documents pertaining to the manager of the Assessee, which are self-explanatory and establish a genuine, bona fide and plausible cause, the delay is condoned.

3.

Coming to the merits, both the authorities below denied the deduction claimed by the Assessee under section 80P(2)(d) of the Act in respect of interest income of ₹8,83,647/- earned from Saraswat Co-operative Bank.

4.

The issue is no longer res integra and has been decided in favour of the Assessee by the Hon'ble Coordinate Bench of the Tribunal at Mumbai in Pathare Prabhu Co-operative Housing Society Ltd. v. ITO [2023] 153 taxmann.com 714/202 ITD 464 (Mumbai-Trib.), ITA Nos. 1346 & 1347/Mum/2023, decided on 27.07.2023, more or less holding as under;

“Though section 80P(4) excludes a co-operative bank from claiming deduction under section 80P, however, the said provision does not disentitle another co-operative society from claiming deduction under section 80P(2)(d) in respect of interest income earned from its investments with such co-operative bank. A co-operative bank continues to be a co-operative society registered under the relevant Co-operative Societies Act and, therefore, interest income derived by a co-operative housing society from deposits or investments made with co-operative banks is eligible for deduction under section 80P(2)(d) of the Act.” 5. Thus, the issue being squarely covered by the aforesaid decision, the deduction claimed by the Assessee under section 80P(2)(d) of the Act is allowed.

3 ITA No.3037/M/2026 Rajgir Chambers C OP HSG,

6.

In the result, the Assessee's appeal is allowed.

Order pronounced in the open court on 13.07.2026.

Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER

(ANKIT SWARNKAR) Private Secretary Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench

//True Copy// By Order

Dy/Asstt. Registrar, ITAT, Mumbai.

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