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

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ITA 939/MUM/2025Status: DisposedITAT Mumbai27 March 2025AY 2017-18Bench: SHRI PAWAN SINGH, JUDICIAL MEMBER SHRI GIRISH AGRAWAL (Accountant Member)5 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that co-operative banks are primarily co-operative societies and the interest earned from them is eligible for deduction under Section 80P(2)(d), following consistent decisions of various benches.

What were the facts?

The assessee claimed a deduction of Rs. 20,20,211/- under Section 80P(2)(d) for interest received from a co-operative bank. The AO disallowed this deduction, viewing co-operative banks as commercial banks not covered by the definition of a co-operative society.

What were the issues?

Whether interest income earned by a co-operative society from a co-operative bank is eligible for deduction under Section 80P(2)(d) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d),Section 250,Section 254(1)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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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 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)

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.

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