THE CHITRAPUR CO-OPERATIVE HOUSING SOCIETY LIMITED,MUMBAI vs. INCOME TAX OFFICER CIRCLE 19(3), MUMBAI

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ITA 4037/MUM/2026Status: DisposedITAT Mumbai21 August 2026AY 2022-234 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 is entitled to deduction under Section 80P(2)(d) on interest income earned from cooperative banks, following its own previous decisions and Supreme Court rulings.

What were the facts?

The assessee claimed deduction under Section 80P(2)(d) on interest income earned from FDs with cooperative banks. The Assessing Officer denied this deduction, and the assessee appealed.

What were the issues?

Whether interest income earned by a cooperative housing society from fixed deposits with cooperative banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI MAKARAND VASANT MAHADEOKAR

Pronounced: 21/08/2026

PER SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER: This appeal is filed by the assessee against the order of the Additional/Joint Commissioner of Income Tax (Appeals)-3, Bangalore, dated 29.10.2025 for the assessment year 2022-23 in denying deduction claimed u/s 80P(2)(d) on the interest income earned on FDs with cooperative banks.

ITA 4037/MUM/2026 THE CHITRAPUR CO-OPERATIVE HOUSING SOCIETY LIMITED 2. Learned Counsel for the assessee, at the outset, submitted that the issue is squarely covered in assessee's own case by the order of the Tribunal for the assessment years 2021-22 and 2023-24 in ITA Nos. 9139 and 9140/Mum/2025, dated 24.03.2026. Learned Counsel referring to the said decision of the Tribunal submitted that the Tribunal after analysing various decisions including the decision of the Hon'ble Supreme Court in the case of Totagars Cooperative Sale Society, (2010) 323 ITR 283 (SC), held that the assessee is entitled to deduction u/s 80P(2)(d) of the Act in respect of interest income earned from cooperative banks.

3.

On the other hand, learned DR placed reliance on the orders of the authorities below.

4.

Heard rival contentions, perused the orders of the authorities below and the decisions relied upon. On perusal of the order of the Tribunal in assessee's own case in ITA Nos. 9139 and 9140/Mum/2025, dated 24.03.2026, we find that the issue in appeal is squarely covered in favour of the assessee, wherein the Tribunal following the decision of the coordinate bench in the case of M/s. Premium Tower Cooperative Housing Society Limited vs. CIT in ITA No. 1583/Mum/2023, dated 17-

ITA 4037/MUM/2026 THE CHITRAPUR CO-OPERATIVE HOUSING SOCIETY LIMITED 05-2023 held that the assessee is entitled for deduction u/s 80P(2)(d) of the Act on the interest income earned on FDs with cooperative banks.

5.

Thus, respectfully following the above decision, we direct the Assessing Officer to allow deduction u/s 80P(2)(d) of the Act in respect of interest income earned on FDs with cooperative banks. The grounds raised by the assessee are allowed.

6.

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

Order pronounced in the open court on 21/08/2026

Sd/- Sd/- MAKARAND VASANT MAHADEOKAR CHALLA NAGENDRA PRASAD ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 21/08/2026 Prabhat

ITA 4037/MUM/2026 THE CHITRAPUR CO-OPERATIVE HOUSING SOCIETY LIMITED

Copy to: THE CHITRAPUR CO-OPERATIVE HOUSING SOCIETY LIMITED, D-1/225, PANDURANGASHRAM MARG, 1 27TH ROAD, T P S III, BANDRA WEST, MUMBAI, MUMBAI-400050, MAHARASHTRA

INCOME TAX OFFICER CIRCLE 19(3), 2 PIRAMAL CHAMBERS, MUMBAI-400012, MAHARASHTRA

3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE

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