TWINSTAR JUPITER CO-OP HSG SOC LTD,MUMBAI vs. ITO, WARD 30(1)(1) , MUMBAI

The assessee has raised the following grounds of appeal:

1. The CIT(A) erred in law and facts by disallowing deduction of ₹11.08.262 under Section 80P(2)(d) on interest income earned from deposits with Cooperative Banks, despite the same being squarely covered under the provisions of the Act.

Brief facts of the case are that the assessee is a co-operative housing society registered under the Maharashtra Co-operative Housing Societies Act, 1960. Return declaring income of Rs. 2,59,930/- was filed after claiming, inter Ay 2021-22 Twinstar Jupiter CHSG LTD. alia, deduction u/s. 80P(2)(d) of Rs. 11,08,262/- in respect of interest received from Cooperative banks. Subsequently, a notice was issued by the CPC proposing adjustment of Rs. 11,08,262/- u/s. 143(1)(a)(ii) of the Act in respect of claim of deduction 80P(2)(d) of the Act. The assessee filed its objections. However, the CPC proceeded to disallowed the claim and issued intimation order dated 25.10.2022 after computing total income at Rs. 13,68,190/-. Aggrieved with the order of CPC, the assessee preferred an appeal before Ld. CIT(A). Vide order dated 20.12.2023, the assessee’s appeal was dismissed by Ld. CIT(A) on merits. Aggrieved with the order of Ld. CIT(A), the assessee has filed an appeal before the Tribunal. Although several grounds have been taken, the assessee’s arguments are essentially on two grounds i.e. the claim of deduction u/s. 80P cannot be disallowed u/s. 143(1)(a) and on merits as well, in view of the fact that similar deduction has been allowed to the assessee vide assessment/appeal orders for earlier years, the same could not have been disallowed in the current year disregarding the principal of consistency. Before us, Ld. AR has pointed out that the assessee was allowed the claim of deduction u/s. 80P(2)(d) under similar circumstances in the AY 2019-20 by the coordinate bench. Vide order dated 28.06.2024, the assessee’s appeal was allowed with the following observations: “2. The assessee has filed its return of income on 18/09/2019 and due date for filing of return of income in the case of audited accounts was on 30/09/2019. The assessee being a co-operative housing society, its accounts has to be necessarily audited u/s. 81 of Maharashtra Co-operative Housing Societies Act, 1960. Thus, return of income filed by the assessee was within due date as the duc date of return of income was on or before 30/09/2019, which was the due date u/s.139(1). The CPC has made the adjustment disallowing the claim u/s.80P on the ground that return has been filed beyond the due date. Prior to the amendment made by the Finance Act 2021 w.e.f. A.Y. 2021-22, there was no scope for making any adjustment u/s.143(1)(a) except for the claim of deduction claimed u/s. u/s.10AA, 80ΑΙΑ, 801AB, 801B, 80IC, 801D or Ay 2021-22 Twinstar Jupiter CHSG LTD. Section 801E There was no such provision to disallow the claim of deduction u/s.80IP. Further, even after the amendment such an adjustment can be made, only if return has been filed beyond the due date, which is not the case here. Accordingly, the adjustment of 80P(2)(d) made by the CPC and as confirmed by the First Appellate Authority is deleted.”

In the result, appeal of the assessee is allowed.