NEELKANTH GARDENS CO-OP HOUSING SOCIETY LIMITED,MUMBAI vs. INCOME TAX OFFICER WARD 27(2)(4), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL
“K (SMC)” BENCH, MUMBAI

BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER
SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER
Neelkanth Gardens Co-operative Housing
Society Limited,
BK Marg, Govandi East,
Mumbai – 400088
Maharashtra.
PAN No. AAAAN8883F

……………. Appellant
Versus

ITO – 27(2)(4),
Mumbai-400020

……………. Respondent

Assessee by : Shri R. Ganesh & R. Kirthivasan – CA/AR

Revenue by : Shri Kiran Unavekar, Sr. DR

Date of Hearing – 20/03/2025

Date of Order – 27/03/2025

Order under section 254(1) of Income Tax Act

PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by the assessee is directed against the order passed by the ADDL/JCIT (A)-2 Visakhapatnam, /National Faceless Appeal Centre/ CIT(A) dated 27.01.2025 passed under section 250 of the Income Tax Act, 1961 (“the Act”) for the assessment year (A.Y.) 2017-18. The assesse has raised grounds of appeal relate to deduction under section 80P(2)(d). 2. Rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld. AR) of the assessee submits that while

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Neelkanth Gardens Co-operative Housing Society Ltd.

filing return of income the assessee claimed deduction of Rs.20,20,211/- under section 80P(2)(d) of the Act on account of interest received from co-operative bank. The AO disallowed such deduction by taking view that co-operative banks are a commercial bank and does not fall under the purview of co-operative society. 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. The ld. AR relied upon the decision of Mumbai Tribunal in Sai Ankur Co-operative
Housing Society Limited vs. ITO (2025) 171 taxmann.co, 44 (Mumbai -Trib) and Karnataka High Court in PCIT Vs Totagars Co-operative sales Society
(2017) 78 taxmann.com 169 (Karnataka).
3. On the other hand, learned senior departmental representative (Sr.DR) for the Revenue supported the order of lower authorities.
4. We have considered the submissions of both the parties and have gone through the orders of lower authorities. We have also deliberated on various case laws relied upon by the learned AR of the assessee. 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 coordinate bench in Sai Ankur Co-operative Housing Society Limited vs. ITO (supra) and Karnataka High Court in PCIT Vs Totagars Co-operative sales Society (supra)

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Neelkanth Gardens Co-operative Housing Society Ltd.

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.
5. In the result, the grounds of appeal raised by the assessee are allowed.
Order pronounced in the open Court on 27/03/2025. GIRISH AGRAWAL
ACCOUNTANT MEMBER PAWAN SINGH
JUDICIAL MEMBER

MUMBAI, DATED: 27/03/2025

Prabhat

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