BEAU MONDE B TOWER COOPERATIVE HOUSING SOCIETY LIMITED,MUMBAI vs. WARD 22(1)(6), INCOME TAX OFFICER, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL“J(SMC)” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER ITA No. 7191/MUM/2026 (AY: 2016-17) (Physical hearing) Beau Monde B Tower Cooperative ITO, Ward – 22(1)(6), Mumbai Housing Society Limited vs Piramal Chamber, Appasaheb Marathe Marg, Mumbai – 400012. Prabhadevi Mumbai – 400025. [PAN: AABAB8968J] Appellant / Assessee Respondent / Revenue Assessee by Shri J.P. Bairagra, CA Revenue by Ms. Jayshree Thakur, Sr. DR Dale of institution of appeal 05.06.2026 Date of hearing 21.08.2026 Date of pronouncement 21.08.2026 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of ld. CIT(A)dated 21.08.2025 for Assessment Year (AY) 2016-17. Though, the assessee has raised multiple grounds of appeal, however as per our considered view the substantial ground of appeal relates to disallowance under section 80P(2)(d) on account of interest received by assessee society from Co- operative Bank. 2. Rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld. AR) of the assessee fairly submits that there was delay of 288 days in filing appeal before ld. CIT(A). The delay was neither intentional nor deliberate. But due to bonafide reasons. The assessee has filed copy of affidavit of Shri Ashok Kakkar who is managing and looking after of all tax compliances of the society. Shri Ashok Kakkar was suffering from various health issues and could not take appropriate step in time. The assessee has good case on merit and is likely to succeed if their case is considered on merit. 3. On merit of the case, the ld. AR of the assessee submits that grounds of appeal raised in the present appeal relates to deduction under section

ITA No.7191/Mum/2026 (AY: 2016-17) Beau Monde B Tower Cooperative Housing Society Limited 80P(2)(d). The assessee earned interest of Rs. 36,60,387/- on fixed deposits as well as savings bank account in Sarswat Cooperative Bank Ltd. and Mumbai District Central Co-operative Bank Ltd. Both the banks are registered under Co-operative Society Act. In a series of decision, the Tribunal if held that co-operative banks are primary co-operative society and interest or dividend earned by assessee on such deposit is eligible for deduction under section 80P(2)(d). The ld. AR further submits that similar disallowance was made by AO in A.Y. 2015-16 and in 2017-18, however, on further appeal before ld. CIT(A), the assessee was allowed relief on the basis of decision of various benches of Tribunal wherein it was held that co-operative banks are primarily co-operative society. 4. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the Revenue supported the order of ld. CIT(A). The ld. Sr. DR submits that assessee has not explained the delay properly. The ld. CIT(A) dismissed the appeal of assessee by not condoning the delay in filing appeal before him. In case, this bench is of the view that delay in filing appeal before ld. CIT(A) is deserves to be condoned, the matter may be restored back to the file of ld. CIT(A) to decide it on merit. 5. We have heard the submission of both the parties and have gone through the orders of lower authorities. Firstly, we are considering the delay in filing appal before ld. CIT(A). Considering the explanation and the affidavit of one of the office bearers of assessee society that he was suffering from various healths related issues and could not file appeal in time. Thus, taking a lenient view, the delay in filing appeal before ld. CIT(A) is condoned. Now, adverting to merits of the case. 6. We find that assessment was completed under section 144. The ld. CIT(A) dismissed the appeal as unadmitted by not condoning the delay in filing appeal. We further find that similar disallowances were made by AO in A.Y. 2015-16 and in 2017-18, however, on further appeal before ld. CIT(A), the assessee was allowed relief on the basis of decision of various benches of Tribunal and various High Courts wherein it was held that co-operative banks are primarily co-operative society.

ITA No.7191/Mum/2026 (AY: 2016-17) Beau Monde B Tower Cooperative Housing Society Limited 7. Considering the fact that assessment was completed ex-parte and without verification of fact therefore, we deem it appropriate to restore the issue to the file of jurisdictional assessing officer to verify the fact about receipt of interest from co-operative banks and pass order afresh after considering the decision of ld. CIT(A) in appeal for A.Y. 2015-16 and 2017- 18 on similar issue. Needless to direct that before passing the order afresh, the AO shall allow fair and reasonable opportunity to the assessee. The assessee is also directed to be more vigilant in future in making timely compliance. 8. In the result, appeal filed by assessee is allowed. Order was pronounced in open court on 21/08/2026 at the time of hearing. Sd/- Sd/-

JAGADISH PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

MUMBAI, Dated: 21/08/2026 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