BAKHTAWAR CO-OPERATIVE HOUSING SOCIETY LTD,NEPEANSEA ROAD, MUMBAI. vs. ITO, WARD 19(1)(1), MUMBAI, MUMBAI

Per Arun Khodpia, AM: This appeal is preferred by the assessee, directed against the order of

Commissioner of Income Tax Appeal, ADDL/JCIT (A), Thiruvanantpuram [in short,

“the Ld. CIT(A)”] dated 10.02.2026 for the assessment year 2012-13, which in turn

arises from assessment order u/s 143(1) of the Income Tax Act, 1961 (“the Act”)

dated 27.02.2013, passed by CPC, Bengaluru (in short, “the Ld. AO”). The grounds

of appeal raised by the assessee are as under:

deduction under section 80P amounting to Rs. 13,77,502/- by the CPC vide

ITA No. 2965/Mum/2026 Bakhtawar Co-operative Housing Society Ltd. intimation under section 143(1) of the Act dated 27.02.2013. The issue has been

raised before the Ld. CIT(A) Appeals, who had dismissed the appeal of assessee

treating the same barred by limitation being delayed by more than thirteen years

in filing of the appeal. The assessee, being aggrieved with the decision of the Ld.

CIT(A) Appeals, filed the present appeal before us.

Appeals, an affidavit for condonation of delay in filing of appeal has been filed,

stating the reasons for delay. As per the contents of the affidavit, it is explained

that when the claim of deduction under section 80P(2)(d) of the assessee was

rejected by the CPC, the part time accountant, who was dealing with the matters,

under impression that the matter can be resolved by explaining it to the Ld. AO

had pursued the same before the Ld. AO. Also, the assessing office informed that

the rectification will be carried out. The Tax Consultant of the assessee society

also advised for not filing of an appeal against the aforesaid adjustment. Further,

due to the Pandemic Covid the office bearers as well as the accountant, who were

changed, the matter remained unattended without anyone’s knowledge.

Meanwhile, the refunds in respect of certain years were getting adjusted against

the demand of assessment year 2012-13. The new committee, who had come into

effect approached the New Tax Consultant to resolve the issue. Accordingly, they

ITA No. 2965/Mum/2026 Bakhtawar Co-operative Housing Society Ltd. approached the Ld. AO for rectification and also advised that an appeal is to be

filed with the Commissioner of Appeals. As per advice, an appeal was filed before

the Ld. CIT(A) Appeals on 04.02.2026. It was the submission that the delay was

neither willful nor intentional but occurred due to circumstances beyond control.

The delay was caused because of dependance on the accountant and change of

incumbents in the managing committee every three years. Further, the Covid

conditions, also added the reasons for delay. It was the prayer that since the delay

was purely on account of number of problems and circumstances faced by small

societies, the same may be condoned in the interest of justice. On the contrary,

the Ld. DR representing the revenue objected to the contentions of the assessee

and have vehemently supported the orders of the Ld. CIT(A) Appeals. In

rebuttal,the Ld. AR strongly placed his reliance on various decisions wherein the

80P(2)(d) was granted to the Co-Operative Housing Societies on similar facts and

circumstances, as in the assessee’s case. The cases relied upon and listed as under:

Sl. No. Particulars 1 Vishva Villa Co-op Housing Society Ltd Vs. ITO. Ward 19(3)(1), ITA No. 682, 683 684/Mum/2024 dated 27.06.2024. 2 Suraj Co-operative Housing Society Limited Vs. ITO, Ward 19(3)(1), ITA No. 2348, 2349, 2350/Mum/2025. 3 Presidential Plaza Co-op Premises Society Limited Vs. ITO Ward 27(2)(1), ITA No. 1508/Mum/2024 dated 12.11.2024. 4 Kinjal Heaven Vs. ITO, Ward 19(2)(2), ITA No. 2955, 2956, 2957 & 2958/Mum/2023 dated 06.11.2023 5 M/s. Premium Tower Co-operative Housing Society Ltd. Vs. The Commissioner (Appeals) of Income Tax Mumbai, ITA No. 1583/Mum/2023 dated 17.05.2023.

ITA No. 2965/Mum/2026 Bakhtawar Co-operative Housing Society Ltd. 6 Jagruti Nagri SahakariPatsanstha Myt Parli Vaijnath Vs. ITO, ITA No. 2252 to 2254/Pun/2024,Dt. 23.01.2024, ITAT Pune.

on record and decisions relied upon by the assessee. Admittedly, an

adjustment was made by CPC under section 143(1), by denying the claim of

assessee regarding exemption under section 80P(2)(d) of the Act. It seems

that the assessee society is entitled for such claim and the legitimate claim

of the assessee society was denied by making a variation in the return of

income. Regarding condonation of delay, we find substance in the

submissions of the assessee that the delay was on account of certain

reasons, which were beyond the control of assessee and it cannot be

assumed that there would be any mala fide intentions or deliberate attempt

of the assessee’s society in the incidence of such delay. We, thus, condone

the delay in filing of appeal before the Ld. CIT(A) Appeals.

issue by setting it aside to examine the claim of assessee under section

80P(2)(d), after factual verifications. This issue is equally covered by the

decision of ITAT, Mumbai “SMC” bench in the case of Torino Co-operative

ITA No. 2965/Mum/2026 Bakhtawar Co-operative Housing Society Ltd. Housing Society Ltd. Vs. ITO in ITA No. 1788/Mum/2026 vide order dated

05.05.2026, wherein the relevant findings of tribunal are as under:

“7. We have considered the submissions of assessee and reasons furnished before us. We find that the assessee is a Co-operative Housing Society, which had tried its level best to get the rectification done through various communications with the department. In view of such facts and circumstance, while the bona fides of the assessee society cannot be disbelieved and in absence of any default on the part of the assessee. In the interest of justice, we condone the delay in filing of appeal before ld. CIT(A) and direct to decide the issuesin set aside afresh on merits.”

circumstances to the case of Torino Co-operative Housing Society Ltd.

(supra), we, therefore, respectfully follow the aforesaid decision,as deemed

appropriate set aside the matter to the file of Ld. AO for fresh adjudication.

of being heard in the set aside proceeding. The assessee is also directed to

cooperate and proactively assist in the set aside proceedings, failing which

the Ld. AO would be at liberty to decide the appeal in accordance with the

mandate of law.

above terms.

Order pronounced in the open court on 25 -05-2026.

ITA No. 2965/Mum/2026 Bakhtawar Co-operative Housing Society Ltd.

Sd/- Sd/- (SMT. BEENA PILLAI) (ARUN KHODPIA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Mumbai, Dated : 25-05-2026. Soumili Das, PS

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. Guard File 5. CIT

BY ORDER,

(Dy./Asstt. Registrar) ITAT, Mumbai