THE UNIVERSITY OF MUMBAI EMPLOYEES COOP CREDIT SOC LTD,FORT MUMBAI vs. ITO WARD 30(1)(1), MUMBAI, BANDRA

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ITA 7858/MUM/2025Status: DisposedITAT Mumbai24 April 2026AY 2020-20214 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 income earned by the assessee, including interest and dividend from investments in other cooperative societies/banks, is eligible for deduction under Section 80P(2)(a)(i). This decision was based on previous rulings in the assessee's own case and other similar cases.

What were the facts?

The assessee, a cooperative credit society, claimed a deduction under Section 80P for interest income earned on deposits with cooperative banks. The Assessing Officer disallowed this deduction, which was confirmed by the CIT(A).

What were the issues?

Whether interest income earned by a cooperative credit society on deposits with cooperative banks is eligible for deduction under Section 80P(2)(a)(i) and 80P(2)(d).

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI ANIKESH BANERJEE & SHRI GIRISH AGRAWAL

For Appellant: Shri Ritesh Gawande, CA
For Respondent: Ms. Kavita Kaushik, Sr. DR
Hearing: 03.02.2026Pronounced: 24.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER and SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 7858/MUM/2025 Assessment Year: 2020-21 The University of Mumbai vs ITO, Ward – 30(1)(1) Employees Coop Credit Society Kautilya Bhavan, BKC, Ltd Mumbai – 400051. 222, University Building, MG Road, Fort Mumbai - 400032 (PAN: AAAAT4466C) Appellant Respondent Present for: Appellant by : Shri Ritesh Gawande, CA Respondent by : Ms. Kavita Kaushik, Sr. DR Date of Hearing : 03.02.2026 Date of Pronouncement : 24.04.2026 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi / CIT(A), vide order no. ITBA/NFAC/S/250/2025-26/1081981928(1), dated 24.10.2025, passed against the assessment order by Income Tax officer, Ward - 30(1)(1), Mumbai u/s 143(3) r.w.s 144B of the Income-tax Act (hereinafter referred to as the “Act”), dated 30.08.2022, for Assessment Year 2020-21.

2.

Grounds taken by the assessee are reproduced as under: 1. On the facts and circumstances of the case, and in law, the Assessing officer, Assessment Unit, Income Tax Department, ("the AO) erred in not

2 ITA No. 7858/Mum/2025 The University of Mumbai Employees Co-op Credit Society Ltd AY 2020-21 allowing deduction u/s. 80P (2) (a) (i) of the Act in respect of the interest income earned by the Appellant on the deposits kept by it with co-operative banks.

2.

The AO erred in not allowing Deduction U/s. 80 P (2) (d), as the income from Other Sources of the Appellant in respect of the interest income earned by the Appellant on the deposits kept by it with co-operative banks. It is submitted that in the facts and the circumstances of the case, and in law, no such disallowance was called for.

4 In the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi erred in confirming the same additions thereby dismissing the appeal by passing an ex-parte order in absence of any submissions made by the Appellant.

3 The Appellant craves leave to add, alter, delete or modify all or any the above grounds at the time of hearing.

3.

Brief facts of the case are that assessee is a cooperative credit society registered under the Maharashtra Cooperative Society Act, 1960, formed for the employees of the University of Mumbai. According to the assessee, only and sole aim of its set up is to encourage thrift and cooperation amongst its members by pooling financial resources and using the same to help the needy members. Assessee filed its return of income on 28.10.2020, reporting total income at Nil after claiming deduction u/s 80P of Rs. 1,14,65,361/-. Ld. AO intimated the assessee through his show cause notice that out of the total claim of deduction made u/s 80P, assessee has received Rs. 62,31,392/- towards interest income / dividend income on investments made with the Mumbai District Central Coop Bank and Maharashtra State Coop Bank Ltd which he proposed to disallow. Assessee submitted its explanation and contended that this issue has already been held in its favour by the Coordinate Bench in assessee’s own case for A.Y. 2014-15 in ITA No. 450/Mum/2019 dated 20.05.2020, wherein ld. AO was directed to allow the deduction u/s

3 ITA No. 7858/Mum/2025 The University of Mumbai Employees Co-op Credit Society Ltd AY 2020-21 80P(2)(a)(i) on the interest / dividend income received by it on investments made with the aforesaid two banks. Assessee also placed reliance on another decision of Coordinate Bench in the case of Navbharat Urban Cooperative Credit Society Ltd vs. ITO in ITA No. 6964/Mum/2017 and in the case of Sarvodaya Cooperative Credit Society Ltd vs. ITO in ITA No. 292/Mum/2022. The fact in respect of earning of interest / dividend income by the assessee from the said two cooperative banks is not in dispute. Despite the issue being covered in assessee’s own case by the decision of Coordinate Bench (supra), ld. AO disallowed the deduction u/s 80P(2)(a)(i) of Rs. 62,31,392/- which the ld. CIT(A) confirmed while dismissing the appeal filed by the assessee.

4.

Before us, ld. Counsel for the assessee submitted that assessee carries on the activities of providing credit facilities to its members and therefore, the claim made by it squarely falls with the provisions of Sec. 80P(2)(a)(i). It is also a case of the assessee which gets covered by the provisions contained in Sec. 80P(2)(d) which allows claiming deduction towards interest / dividend income earned from cooperative society.

4.1. From the perusal of the order of the Coordinate Bench in assessee’s own case, we note from para 7 about the factual position that assessee is not carrying out any banking business to public at large, but engaged in providing credit facilities to its members only. Based on this fact, the Coordinate Bench concluded that income earned by assessee including interest / dividend received by it from investments made by with other cooperative society / banks is eligible for deduction u/s 80P(2)(a)(i) of the Act. It thus, held that assessee is

4 ITA No. 7858/Mum/2025 The University of Mumbai Employees Co-op Credit Society Ltd AY 2020-21 allowed the benefit of deduction u/s 80P(2)(a)(i). We find that the issue is no longer res- integra and is not only covered by the decision of the Coordinate Bench in assessee’s own case (supra) but also plethora of subsequent decisions wherein such claims made by the cooperative societies have been allowed. It is also noted that similar deduction has been allowed in assessee’s own case for the A.Y. 2013-14, 2017-18 and 2018-19 in the first appellate proceedings by ld. CIT(A) for which revenue has not gone in appeal before the higher forum. Accordingly, considering the overall factual matrix of the present case with no material change from the past as also nothing cogent brought on record by the Revenue to controvert the same and the judicial precedents referred above, claim of deduction made by the assessee u/s 80P(2)(a)(i) of Rs. 62,31,390/- is allowed. Grounds raised by the assessee in this regard are allowed.

5.

In the result, appeal by the assessee is allowed.

Order pronounced in the open court on 24.04.2026. Sd/- Sd/- [Anikesh Banerjee] [Girish Agrawal] Judicial Member Accountant Member Dated: 24 April, 2026 MP, Sr. P.S. Copy to: 1 The Appellant 2 The Respondent 3 DR, ITAT, Mumbai 4 Guard File 5 CIT BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai

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