JP DECKS CO-OPERATIVE HOUSING SOCIETY LTD,MUMBAI vs. INCOME TAX OFFICER, WD-41(3)(2), MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER;

CIT(A)/ADDL/JCIT(A)-3, Bangalore, both dated 30.01.2016 for A.Y. 2020-21 &

2021-22. Though, in both the appeals the assessee has raised multiple grounds

of appeal, however, in our considered view, the substantial ground of appeal

relates to disallowance under section 80P(2)(d). In AY 20201-21, the assessing

officer (AO) / Central Processing Centre (CPC) disallowed Rs.1,72,176/- and in AY

2021-22 Rs. 20,57,507/-. As facts in both the years are similar, therefore, with

the consent of both the parties, both the appeals were clubbed heard together

and are decided by common order.

learned authorised representative (ld.AR) of the assessee submits that the

assessee claimed deduction of Rs.1,72,176/- in AY 2020-21 and Rs. 20,57,507/-

in AY 2021-22under section 80P(2)(d) of the Act on account of interest received

from co-operative banks. 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. To support his submissions,

the ld AR of the assessee relied on the following decision:  PCIT vs Peroorkada Service Co-operative Bank Ltd. 134 taxmann.com 380 (Kerala- HC)  Thorapadi Urban Co-op Credit Society Limited vs ITO W.P. No(s). 11172, 11174, 11177 and 11180 of 2023 (Mad-HC)  Bharat Sanchar Nigam Employees Co-operative Credit Society Limited vs ITO ITA No. 1293/Mum/2024  Indian Oil Employees Welfares Co-operative Society Ltd. vs ACIT ITA No. 3518 & 3519/Mum/2023  Reserve Bank Staff and Officers Co-op Credit Society Ltd. vs ITO ITA No. 3114 to 3118/Mum/2023  Chitrapur Co-operative Housing Society Ltd. vs ITO 184 taxmann.com 657 (Mum- Trib.) 3. On the other hand, learned senior departmental representative (Sr.DR) for the

Revenue supported the order of lower authorities.

the orders of lower authorities. 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.

Order pronounced in the open Court on 04/05/2026 at the time of hearing.

/- S Sd/- SS/- Sd/-

GIRISH AGRAWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

MUMBAI, DATED: 04/05/2026 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