THE WOODLAND CO-OPERATIVE HOUSING SOCIETY LTD ,MUMBAI vs. DY COMMISSIONER OF INCOME TAX 23(1), MUMBAI , MUMBAI
Income Tax Appellate Tribunal, MUMBAI BENCH “H (SMC
Before: SHRI OM PRAKASH KANT () & SHRI RAJ KUMAR CHAUHAN () Assessment Year: 2012-13
PER OM PRAKASH KANT, AM
This appeal by the assessee is directed against order dated
14.02.2025 passed by the Ld. Addl./Joint Commissioner of Income- tax (Appeals) -1, Kolkata [in short ‘the Ld. CIT(A)’] for assessment year 2012-13, raising following grounds:
On facts, in circumstances of the case and in law, Honorable CIT-
A ought to have held that adjustment made to total income by Centralised P of provisions o
On facts, in ci
A ought to ha the appellan operative ba circumstances have deleted
234B and Rs.
The appellant the above Gro
2. Briefly stated, t co-operative housing relevant assessment
₹8,900/-. The assess aggregating to ₹3,77
claimed deduction u
1961 (hereinafter re income. The return o of the Act on 27.02
Section 80P(2)(d) was 3. In the appellate p that the original ret
29.09.2012, which Section 139(1) of t assessment year. The of the Income Tax A The Woodland Co
Society Ltd
ITA No. 2545/MU
Processing Centre, Bangalore was outsid of section 143(1) of the Income Tax Act, 1
ircumstances of the case and in law, Hon ave allowed the claim of deduction u/s 8
t society in respect of interest incom anks amounting to Rs. 3,77,131/-On s of the case and in law, Honorable CIT interest of Rs. 1,161/- u/s 234A, Rs.12
.4,296/- u/s 234C, t craves leave to add, alter, modify or de ounds of Appeal.
the facts of the case are that th society, which filed its return o year on 29.09.2012, declaring see had earned interest and d
7,131/- from various co-opera under Section 80P(2)(d) of the I eferred to as 'the Act') in resp of income was processed under 2.2013, wherein the deduction s denied.
roceedings, the ld. CIT(A) took turn of income was filed by t was beyond the due date pr the Act, i.e., 31.08.2012, fo e learned CIT(A) placed reliance
Appellate Tribunal, Mumbai Ben o-operative Housing
2
UM/2025
e the scope
961. norable CIT-
80(P)(2)(d) of me from co- n facts, in T-A ought to 2,771/- u/s elete any of he assessee is a of income for the total income of dividend income ative banks and Income-tax Act, pect of the said r Section 143(1) claimed under note of the fact he assessee on rescribed under or the relevant on the decision nch, rendered in the assessee's own c
306/Mum/2024 dat adjustment in respec
80P(2)(d) is permissi
143(1)(a)(v) of the A beyond the prescribe is reproduced as und
“ para H 2 ..
The Appellant subm by the Hon’ble ITA
27/06/2024 for th
“ 143. 91[(1) under sub-se namely:-
(a) the total namely:-
(i) any arithmetical
(ii) an incorrect clai
92a [
(iia) any such incons preceding previo
93[(iii) disallowance of was furnished be (iv) disallowance of into account in c
(v) disallowance of Chapter VI-A un furnished beyond
(vi) addition of inco included in comp
The disallowance of d the act only furnishing the due date of filing of Therefore, placing relianc
Mumbai in Appellant's o
The Woodland Co
Society Ltd
ITA No. 2545/MU case for the Assessment Year 20
ted 27.06.2024), wherein it ct of disallowance of deduction ble while processing the return
Act, in cases where the return ed due date.The relevant finding der:
.....................................
mitted that its own appeal has been a AT, Mumbai vide ITA No. 306/Mum/2
he A.Y. 2021-22 is as under:
) Where a return has been made under section 139, ection (1) of section 142, such return shall be processe income or loss shall be computed after making t error in the return; 92[***]
m, if such incorrect claim is apparent from any inform sistency in the return, with respect to the informa ous year, as may be prescribed;]
loss claimed, if return of the previous year for whic eyond the due date specified under sub-section (1) of s expenditure 94[or increase in income] indicated in the computing the total income in the return; f deduction claimed under 95[section 10AA or under nder the heading “C.-Deductions in respect of certain d the due date specified under sub-section (1) of sectio ome appearing in Form 26AS or Form 16A or For puting the total income in the return:
eduction under chapter VI A under section 14
g of return This only be made account of non- of the reason.”
ce on the judicial precedent of the Ho own case, the disallowance made by o-operative Housing
3
UM/2025
021-22 (ITA No.
was held that n under Section n under Section has been filed g of the ld CIT(A) adjudicated
2024 dated or in response to a notice ed in the following manner, the following adjustments, mation in the return; ation in the return of any ch set off of loss is claimed ection 139; e audit report but not taken r any of the provisions of n incomes”, if] the return is on 139; or rm 16 which has not been 43 (1) (a) (v) of income within on'ble ITAT, the CPC is hereby upheld. The CPC respect of income and amounting to Rs. 3,77, provisions of Section 13
No 3 is DISMISSED.”
4. We have heard counsel for the parti on record. The two firstly, whether t adjustment invoking deduction claimed un that the return of inc under Section 139
Centralized Processin adjustment under Se incorrect claim.
4.1 Before us, the reliance upon the de
Mumbai Bench, ren
309/Mum/2024 for t
4.2 The Tribunal (s adjustments under S deduction under Cha clause (v) of clause ( legally sustainable o
The Woodland Co
Society Ltd
ITA No. 2545/MU has rightly disallowed the claim u/s.
d dividend income from co- opera
131/- as the return was not filed
39(1) of the I. T. Act, 1961. Hence, the rival submissions advanced es and perused the relevant m o issue that arises for our co the ld CIT(A) is justified in section 143(1)(1)(v) of the Act nder Section 80P(2)(d) of the Act come was filed beyond the pres
(1) of the Act, secondly, w ng Centre (CPC) was justified ection 143(1)(a) of the Act hold learned counsel for the asses ecision of the Income Tax App dered in the assessee’s own c the Assessment Year 2021–22. upra), after analyzing the scop
Section 143(1)(a), has held that apter VI-A can only be made in (a) to Section 143(1), and such nly where the return of income o-operative Housing
4
UM/2025
80P(2)(d) in ative banks as per the the Ground d by the learned aterial available onsideration is, upholding the disallowing the t, on the ground scribed due date whether the ld d in making an ding it to be an ssee has placed pellate Tribunal, case in ITA No.
e of permissible disallowance of n terms of sub- disallowance is e has been filed beyond the due date further held that wh time, any disallowan not fall within the sc sub-clauses (i) to ( observed that deduc any statutory limit, render it an incorrect also noted that mere classified by the as Sources” and anothe
Profession” does not vitiate the claim of Section 80P(2)(d) are note that the Tribun nothing but co-oper banking, and therefo way of interest from Section 80P(2)(d). Th and not a co-operati not attracted. The reproduced as under “4. We have orders of the appeal is whe
The Woodland Co
Society Ltd
ITA No. 2545/MU e specified under Section 139(1
here the return is filed within nce of deduction under Section cope of an “incorrect claim” as e
(iii) of Section 143(1)(a). It w ction under Section 80P(2)(d) is percentage, or monetary thre t claim apparent from the retur ely because a part of the inter ssessee under the head “Incom er part under “Profits and Gains t alter the essential nature of f deduction, provided the co e otherwise satisfied. It is furt al held, on merits, that co-oper rative societies engaged in th ore, income earned by the asse m such banks is eligible for d e assessee being a co-operative ive bank, the provisions of Sec relevant finding of the Trib
:
e heard the rival contention and perus e lower authorities. The issue involved ether the assessee is entitled to deduction o-operative Housing
5
UM/2025
1). The Tribunal n the prescribed
80P(2)(d) would envisaged under was specifically s not subject to eshold so as to rn. The Tribunal rest income was me from Other s of Business or the income nor onditions under ther relevant to rative banks are he business of essee society by deduction under housing society ction 80P(4) are bunal(supra) is sed the in this n under section 80 P earned by the it is disclosed adjustment m or not.
5. As per pro adjustment to 143. 67[(1) W or in respons
142, such ret namely:—
(a) the total i the following
(i) any arithm
(ii) an incorrec any informati
[(iii) disallowa year for whi beyond the section 139;
(iv) disallowa indicated in computing the (v) disallowan or under any heading "C.—
return is furn section (1) of s
(vi) addition o or Form 16 w total income in 6. The disallo be made und account of no date of filing o
The Woodland Co
Society Ltd
ITA No. 2545/MU
(2) (D) of the act on account of interest e assessee from other cooperative banks d as income from other sources and whet made by the central processing Centre is ovisions of section 143 (1) (a) permits fo o the total income of the assessee:-
Where a return has been made under sectio se to a notice under sub-section (1) of turn shall be processed in the following m income or loss shall be computed after adjustments, namely:—
etical error in the return; 68[***]
ct claim, if such incorrect claim is appare ion in the return; ance of loss claimed, if return of the p ich set off of loss is claimed was fur due date specified under sub-section ance of expenditure 70[or increase in i the audit report but not taken into acc e total income in the return; nce of deduction claimed under 71[section y of the provisions of Chapter VI-A und
—Deductions in respect of certain incomes ished beyond the due date specified und section 139; or of income appearing in Form 26AS or Fo which has not been included in comput n the return:
owance of deduction under chapter VI A c der section 143 (1) (a) (v) of the act o on- furnishing of return of income within t of the return. This is not the reason.
o-operative Housing
6
UM/2025
income even if ther the correct ollowing on 139, section manner, making ent from previous rnished
(1) of income]
count in n 10AA der the ", if] the der sub- rm 16A ting the an only only on the due
Claim of th claim in view (a) "an incorre return" shall return,— (i) of an item, same or some (ii) in respec furnished und been so furnis (iii) in respect specified stat monetary amo 8. It is not the is a deduction ratio or fractio (2) (d) is also part of the in income in pr shown by the sources does consequent d the claim of t an incorrect c 9. Thus, the that section section 143 ( under section 10. On the m define a co-op 19) "co-opera registered un 1912), or und any State for 11. Thus, for covers the co respective coo The Woodland Co Society Ltd ITA No. 2545/MU he assessee cannot be said to be an in of the explanation (a) which is as under:- rect claim apparent from any information mean a claim, on the basis of an entry, which is inconsistent with another entry e other item in such return; ct of which the information required der this Act to substantiate such entry h shed; or t of a deduction, where such deduction e tutory limit which may have been expres ount or percentage or ratio or fraction; e case that deduction under section 80 P n provided by any monitoring limit or perc on. Thus, claim of deduction under sectio not classified as incorrect claim. Merely b nterest is disclosed by the assessee is i rofit and loss account and part of the e assessee under the head income from s not change the character of the incom eduction of such income, if available. Th the assessee in the return of income is a laim. adjustment of disallowance of deduction is not permissible adjustment provided (1) of the act. Therefore the intimation n 143 (1) is not sustainable. merits of the case, provisions of section perative society as under:- ative society"97 means a co-operative nder the Co-operative Societies Act, 191 der any other law for the time being in f the registration of co-operative societies ; the definition of the cooperative society w operative banks are not one has to look operative societies act is applicable. o-operative Housing 7 UM/2025 ncorrect - n in the , in the y of the to be has not exceeds ssed as P (2) (d) centage on 80 P because interest income m other me and erefore, also not n under d under passed n 2 (19) society 2 (2 of force in whether k at the 12. THE MAH 1960, Defines Act as under ―Co-operative doing the bus sections (1) of and includes as an Agric Chapter X. 13. Thus it is operative soc societies are banking com these coopera their status as 14. According income tax ac (d) in respect derived by th any other co-o 15. Thus, th income from cooperative s under this sec 16. It is not bank and the does not appl 17. Thus the 80 P (2) (d) of cooperative b learned CIT – 4.3 The learned co provisions of Section effect from 01.04.20 VI-A under the hea The Woodland Co Society Ltd ITA No. 2545/MU
HARASHTRA CO-OPERATIVE SOCIETIE s cooperative banks as per section 2 (10)
:‖- e bank‖ means a Co-operative society w siness of banking as defined in clause (b) f section 5 of the Banking Companies Ac any society which is functioning or is to f ultural and Rural Development Bank apparent that cooperative banks are als ciety. Only difference is that those coop doing the business of banking as p mpanies act 1949. Therefore, merely b ative societies cooperative bank they do n s a co-operative society.
g to the provisions of section 80 P (2) (d) ct of any income by way of interest or div he co-operative society from its investmen operative society, the whole of such incom he assessee’s investment of earning m such cooperative banks which ar societies whole of such income is ded ction.
in dispute that assessee is not a coop erefore provisions of section 80 P (4) of ly to it.
assessee is eligible for deduction under f the act on its income received from all the banks. of Rs. 410340/- . Thus order
A is reversed.”
ounsel has also drawn our a n 80AC of the Act, which were 18 to provide that deductions ading "C.—Deductions in res o-operative Housing
8
UM/2025
ES ACT,
) of that which is of sub- ct, 1949
function under so a co- perative per the because not lose d) of the vidends nts with me; interest re also ductible perative the act section e above of the attention to the e amended with under Chapter pect of certain incomes" shall not b time prescribed und
Section 80AC applied
IAB, 80-IB, and 80-I consideration, i.e., A amended Section 80A section 80AC is repro
“[Deduction not to be 80AC. Where in comp to the assessment yea
(i) the 1st day of Apri admissible under se section 80-ID or secti
(ii) the 1st day of April
Chapter under the he no such deduction sha such assessment year
139.]”
4.4 We have also ex it stood prior to 01.0
deductions for delaye of Chapter VI-A was adjustment made by 143(1)(a)(v) lacks sta the date of amendme not applicable for the The Woodland Co
Society Ltd
ITA No. 2545/MU be allowed unless the return is der Section 139(1). Prior to th d only to deductions under Sec
C. Accordingly, for the assessm
A.Y. 2012–13, the extended re
AC has no application. For read oduced as under:
e allowed unless return furnished.57
uting the total income of an assessee of any ar commencing on or after- il, 2006 but before the 1st day of April, 20
ection 80-IA or section 80-IAB or section 80- ion 80-IE; l, 2018, any deduction is admissible under eading “C.-Deductions in respect of certain inc all be allowed to him unless he furnishes a r r on or before the due date specified under su xamined the language of Section 04.2018. It is clear that the po ed filing of return under the gen s introduced only from that d the CPC for A.Y. 2012–13 by i atutory backing as the return w ent and the extended scope of d e said year.
o-operative Housing
9
UM/2025
filed within the his amendment, tions 80-IA, 80- ment year under estriction under dy reference said previous year relevant
018, any deduction is -IB or section 80-IC or r any provision of this comes”, return of his income for ub-section (1) of section n 143(1)(a)(v) as ower to disallow neral provisions ate. Hence, the nvoking Section was filed before isallowance was 4.5 In light of the a that, firstly, the dis sustainable in law assessment year and the Tribunal in asse
CPC under Section scope of adjustments
4.6 Accordingly, the and the adjustment m
Act are hereby set as appeal are allowed.
5. In the result, th
Order pronounce (RAJ KUMAR C
JUDICIAL M
Mumbai;
Dated: 10/07/2025
Rahul Sharma, Sr. P.S.
Copy of the Order forwarded
1. The Appellant
2. The Respondent.
3. CIT
4. DR, ITAT, Mumbai
5. Guard file.
////
The Woodland Co
Society Ltd
ITA No. 2545/MU above discussion, we are of the allowance upheld by the learne under the law applicable fo d ,secondly , following the bindi essee’s own case the adjustmen
143(1)(a) does not conform to s as envisaged under that provis e impugned order passed by the made by the CPC under Section side. The grounds raised by the he appeal of the assessee is allow ed in the open Court on 10/07/2025. CHAUHAN)
(OM PRAK
MEMBER
ACCOUNTA d to :
BY ORDER
(Assistant Regi
ITAT, Mum o-operative Housing
10
UM/2025
considered view ed CIT(A) is not or the relevant ing precedent of nt made by the the permissible sion,.
e learned CIT(A) n 143(1)(a) of the assessee in the wed. KASH KANT)
ANT MEMBER
R, istrar) mbai