GODS GIFT D WING CHS LTD,MUMBAI vs. COMMISSIONER OF INCOME TAX (APPEAL), MUMABI

IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC” BENCH MUMBAI

BEFORE SHRI BR BASKARAN, ACCOUNTANT MEMBER &
PAN/GIR No. AACHC2767A
(Applicant)
(Respondent)

Assessee by Shri Pawan Chaudhary
Revenue by Smt. Usha Gaikwad, Sr. DR

Date of Hearing
04.03.2025
Date of Pronouncement
04.04.2025

आदेश / ORDER

PER SANDEEP GOSAIN, JM:

The present appeal has been filed by the assessee challenging the impugned order 09.12.2021 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National
Faceless Appeal Centre, Delhi / CIT(A) Mumbai, for the A.Y
2020-21. The assessee has raised the following grounds of appeal:
1) We have filed Income Tax Return filed for AY 2020-21 u/s 139(1) of income Tax Act, 1961, dated 10.02.2021 and rectification is filed u/s 154 dated 09.12.2021. Notice issued under section 143(1) DIN: CPC/2021/A5/184179968 dated
26.11.2021 and notice u/s 154 DIN: CPC /2021 /U5

2
Gods Gift D Wing Chs, Mumbai.

/195521983 dated 09.12.2021 CPC passed the order u/s 154
which was bad in law. Further learned A.O. has not allowed deduction u/s 80(p)(2)(d) in computation sheet and made addition in Intimation order and retain same stand in rectification also therefore not allowed deduction under section 80(p)(2)(d) of Income Tax Act, 1961. The Assessee is a Co- operative Housing Society and income derived from deposits with cooperative banks is allowed as a deduction under section 80P of Income Tax Act, 1961. We had correctly claimed deduction under said section of Rs. 1,11,509 being interest on deposits with co-operative banks U/s 80 P of Income Tax Act,
1961. Deduction for the same was not given in intimation u/s 143(1) as well as in rectification filed u/s 154 of Income tax
Act, 1961 dated 09.12.2021. Bear text of Section 80P of is mentioned below. 80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub- section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the Assessee. (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income; Learned CPC taken based of section 2(19) of Income Tax Act, 1961 for definition of cooperative which say cooperative society registered under its Act, therefore cooperative bank also registered under this act, therefore it does not exclude co-operative bank, hence. Your interest so received from co-operative bank is allowable as deduction u/s 80 P of Income Tax Act, 1961. 3 Your honour principal of mutuality held in case of ITO vs.
Venkatesh premises co-op society Ltd. by sc a) ITAT Mumbai in the matter of lands ed ccs vs ITO ward 16(1) (3) reported in Mumbai ITA no 3566/mum/2014 decided on 15.01.2016 in respect for AY 2009-10. In this matter the tribunal clearly stated that the revenue was playing with words and the Assessee is entitled to the benefit of section 80p 2(d) in respect of income received from a cooperative bank. b) This was again confirmed in the case of SBI vs CIT reported in (2016) 72
taxmann.com 64 para 17 the Hon Gujarat High court ruled in 3
Gods Gift D Wing Chs, Mumbai.

favour of the Society. c) ITAT Mumbai in the matter of Saraswat cooperative bank ltd., vs
ITO reported on 30.11.1984, approved the position that the bank is a cooperative society entitled to deduction from taxable income u/s80p 2(a)(i) even though the society (bank) was receiving deposits and making loans to non Members. It further allowed exemption of property income u/s 80p (2) (e) as the income was derived as an incidental accrual on investments mad with the approval of the