VISHAL COOPERATIVE HOUSING SOCIETY ,MUMBAI vs. ITO WARD 32(2)(1), MUMBAI

आयकरअपीलीयअिधकरण�ायपीठमुंबईम�। IN THE INCOME TAX APPELLATE TRIBUNAL “J(SMC)” BENCH, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JM & SHRI ARUN KHODPIA, AM I.T.A. No.1861/Mum/2026 (Assessment Year: 2020-21) ITO Ward 32(2)(1) Vishal Coopertive Housing Society Kautilya Bhavan, Mumbai. Society Office, Vishal CHS, Sir M Vs. V Road, Andheri (East), Mumbai- 400069. PAN: AACAV1748D

Assessee- अपीलाथ� / Appellant Revenue-��थ�/ Respondent :

Assessee by : Shri Uday Gumaste Revenue by : Shri Pankaj Kumar (CIT – DR)/ Shri Aditya Rai (Sr. DR.) Date of Hearing : 20.04.2026 Date of Pronouncement : 18.06.2026

ITA No. 1861/Mum/2026; Vishal Cooperative Housing Society O R D E R Per Arun Khodpia, AM:

The captioned appeal is filed by the assessee, against the order of

Commissioner of Income Tax Appeals Additional/JCIT A Kochi [“the Ld. CIT(A)]

dated 29.12.2025 pertaining to assessment year 2020-21, resulting from the

intimation u/s 143(1) of the Income Tax Act, 1961 (“the Act”) dated 25.11.2021

passed by Central Processing Center (CPC), Bangalore (in short, “the Ld. AO”).

The sole ground of appeal in the present case pertains to denial of deduction u/s

80P(2)(d) to the assessee society.

of income for assessment year 2020-21 on 13th February, 2021, offering income

of Rs. 18,10,886/-. The main sources of assessee’s income are interest on Fixed

Deposit maintained with Cooperative Banks and interest on Saving Bank Account

maintained with Nationalized Banks / Cooperative Banks. The assessee society

has claimed interest from Cooperative Banks as deduction u/s. 80P(2)(d) of the

Act amounting to Rs. 17,88,343/-. An intimation u/s. 143(1) was passed on 25th

November, 2011, wherein the deduction claimed by the assessee u/s. 80P(2)(d)

was disallowed by the CPC. Accordingly, the assessee has preferred an appeal

before the Ld. CIT(A). The Ld. CIT(A) deliberated on the issue considering the

submission of the assessee and the intimation issued by the CPC and has 2

ITA No. 1861/Mum/2026; Vishal Cooperative Housing Society concluded that the CPC has rightly restricted the deduction u/s. 80P(2)(d) at

‘NIL’, as the assessee itself has shown the dividend income and interest income

at Part A – P & L, serial no. 14(iii), dividend income at Rs. 0/- and 14(iv) interest

income at Rs. 0/-. The assessee has shown an income of Rs. 18,10,886/-, in

schedule 80P(2)(d), the assessee has claimed Rs. 17,88,343/- as interest from

investment in other Cooperative Society u/s. 80P(2)(d). Therefore, the Ld. AO

has taken a lower of two figures that is interest u/s. 80P(2)(d) (Rs. 17,88,343/-)

or the interest and dividend income which was shown at Rs. 0/-. Accordingly, the

intimation u/s. 143(1) was issued with correct findings and, therefore, the

ground of appeal of assessee are dismissed. Being aggrieved, the assessee

preferred an appeal before the tribunal which is under consideration.

shown its entire receipts under the head interest in schedules other sources,

income from other sources of Rs. 18,10,886/-, which incorporates interest from

Savings Bank Rs. 45,068/- and interest from deposit (Bank/Post

Office/Cooperative society) Rs. 17,65,818/-. Copy of ITR filed is furnished before

us. It is submitted that the interest received by the assessee from Cooperative

Bank or Cooperative Societies as exemption u/s. 80P(2)(d) and, therefore, the

Ld. CIT(A) had not appreciated the facts of the case under right outlook.

ITA No. 1861/Mum/2026; Vishal Cooperative Housing Society Therefore, dismissed the appeal of assessee without any cogent reasoning to

disallow the deduction claimed by the assessee.

authorities.

available on record. Admittedly, the denial of deduction u/s. 80P(2)(d) by the

CPC and by the Ld. CIT(A) on account of zero figure in the interest and dividend

column of P & L statement in the return of income, whereas the assessee has

furnished such details in schedule OS: “Income from other sources.” The

statements furnished by the assessee in ITR is culled out hereunder, for the stake

of reference:

Schedule OS: Income from other sources

1 Gross income chargeable to tax at normal applicable 1 1810886

rates (1a+1b+ 1e+ 1d+1e)

a Dividends Gross [(not exempt u/s 10(34) and 1a 0

10(35)]

b Interest, Gross (bi + bii + biii + biv + bv) 1b 1810886

ITA No. 1861/Mum/2026; Vishal Cooperative Housing Society bi From Savings Bank 1bi 45068

bii From Deposits (Bank/ Post Office/Co-operative 1bii 1765818

Society)

biii From Income Tax Refund 1biii 0

biv In the nature of Pass through income/loss 1biv 0

bv Others 1bv 0

under the head income from other sources and also claimed deduction u/s.

80P(2)(d), which is not disputed by the revenue authorities. The issue of

allowability of section 80P(2)(d) for interest received by a Cooperative Society

from Cooperative Banks having status of Cooperative Society is no more res

integra and, therefore, if the assessee society has earned interest income from

Cooperative Society’s/ Cooperative Banks, the assessee would be entitled for

deduction u/s 80P(2)(d). We under such circumstances direct the assessing

officer to allow deduction claimed by the assessee u/s. 80P(2)(d), after factual

verification of the interest income earned by the assessee.

ITA No. 1861/Mum/2026; Vishal Cooperative Housing Society 6. The assessee shall be afforded with reasoned opportunity of being heard

in the set aside proceedings. During the set aside proceedings, the assessee is

directed to assist the Ld. AO with necessary information so, as to examine the

eligibility of assessee claimed u/s. 80P(2)(d).

AO for fresh adjudication.

terms if our aforesaid observations.

Order pronounced in the open court on 18-06-2026.

Sd/- Sd/- (NARENDER KUMAR CHOUDHRY) (ARUN KHODPIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 18-06-2026. Soumili Das, PS

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. Guard File 5. CIT BY ORDER,

(Dy./Asstt. Registrar) ITAT, Mumbai