DHRUVA TARA CO OPERATIVE HOUSING SOCIETY LTD ,MUMBAI vs. ITO WARD 42(1)(2), MUMBAI

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ITA 58/MUM/2026Status: DisposedITAT Mumbai22 May 2026AY 2014-154 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 the assessee filed its return within the extended due date and that Section 80AC was not applicable for AY 2014-15. It also relied on various High Court and Tribunal decisions supporting the eligibility of interest income from co-operative banks for deduction under Section 80P(2)(d).

What were the facts?

The assessee, a co-operative society, claimed deduction under Section 80P(2)(d) for interest income from a co-operative bank. The lower authorities disallowed this deduction, citing the return filing date and Section 80AC.

What were the issues?

Whether interest income from a co-operative bank is eligible for deduction under Section 80P(2)(d) and if Section 80AC applies to AY 2014-15.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d),Section 80AC,Section 143(1)

AI-generated summary — verify with the full judgment below

PER PAWAN SINGH, JUDICIAL MEMBER;

1.

This appeal by assessee is directed against the order of ld. CIT(A)/ADDL/JCIT(A)

– Kochi dated 12.12.2025 for Assessment Year (AY) 2014-15. The assessee has

raised following grounds of appeal:

Addition of Rs. 5,09,083/-:

“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 received from co-operative bank of Rs. 4,59,083/- plus Rs. 50,000/- by the assessee a co-operative society from its fixed deposit with cooperative bank on the alleged ground that ITR was filed beyond due date, without appreciating that the due date for filing the return of income for AY 2014-15 was 31/10/2014 (audit cases) and return was filed on 30/10/2014, therefore the deduction ought to be allowed.

2.

The learned CIT(A) erred in upholding disallowance of the claim u/s. 80P(2)(d) on the ground that assessee had filed the return of income for AY 2014-15 beyond the due date specified in the Act and as per section 80AC deduction was not allowable without appreciating the fact that the CPC has rejected such claimed u/ 143 (1) of the Act considering incorrect due date of filing the return, asassessee was subjected to statutory audit under MCS Act and therefore the due date was 31/10/2024/2014 (Extended 30/11/2024).

3.

The learned CIT(A) failed to appreciate that provisions of section 80AC of the Act was applicable from AY 2018-19 onward in regards to section 80P, therefore CPC has committed mistake apparent on record in not granting the deduction u/s 80P(2)(c) & (d) of the Act at the time of processing the return of income under section 143(1) 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 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 the

assessee filed its return of income on 30.10.2014 for AY 2014-15 and claimed

deduction of Rs.4,29,092/- plus Rs. 59,000/- under section 80P(2)(d) of the Act

on account of interest received from co-operative bank and cooperative society

respectively. The date of filing return of income for AY 2014-15 was extended by

CBDT in its Circular no. F.No. 153/53/2014-TPL(Pt.I) dated 26.09.2014, upto

30.11.02014. 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 condition

prescribed in section 80AC for seeking certain deduction under the heading “C- deduction in respect of certain income of Chapter VIA” is applicable from AY

2018-19 onwards only.

3.

On the other hand, learned senior departmental representative (Sr.DR) for the

Revenue supported the order of lower authorities.

4.

We have considered the submissions of both the parties and have gone through

the orders of lower authorities. We find that due date of filing return of income

for AY 2014-15 was extended by CBDT in its Circular no. F.No. 153/53/2014-

TPL(Pt.I) dated 26.09.2014, upto 30.11.02014, wherein the assessee was

required to get its account audited under section 44AB. Thus, the return of

income was filed within the extended date for filing return of income. Otherwise,

we also find merit in the submissions of ld AR of assessee that condition

prescribed in section 80AC for seeking certain deduction under the heading “C-

deduction in respect of certain income of Chapter VIA” is applicable from AY

2018-19 onwards only.

5.

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 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.

6.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open Court on 22/05/2026.

/- Sd/-- SSd/-

MAKARANDVASANTMAHADEOKAR PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

MUMBAI, DATED: 22/05/2026 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

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