PRATAP HERITAGE CO OPERATIVE HOUSING SOCIETY LTD ,MUMBAI vs. ITO 42(1)(4), MUMBAI
IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC” BENCH, MUMBAI
BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER
SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER
Assessment Year : 2020-21
Pratap
Heritage
Co-Operative
Housing
Society Ltd.,
Society Office, Pratap Heritage CHS Ltd.,
L.T. Road, Borivalli West,
Mumbai - 400092. PAN No. AAABP0909M
……………. Appellant
Versus
ITO – 42(1)(4),
Kautilya Bhavan, Bandra Kurla Complex,
Bandra (East),
Mumbai-400051. ……………. Respondent
Assessee by : Shri Sharad Seth-CA/ AR
Revenue by : Shri Rajesh Meshram, Sr. DR
Date of Hearing – 24/03/2025
Date of Order – 25/03/2025
Order under section 254(1) of Income Tax Act
PER PAWAN SINGH, JUDICIAL MEMBER; 1. The appeal by the assessee is directed against the order passed by the CIT(A), NFAC, Delhi dated 27.12.2024 passed under section 250
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Pratap Heritage Co-operative Housing Society Ltd.
of the Income Tax Act, 1961 (“the Act”) for the assessment year
2020-21. The assessee has raised the following grounds of appeal:
“1. The order dt.27h December,2024 of The Learned Commissioner of Income Tax (Appeals) (hereinafter referred to as "Ld. CIT (A)") passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as "Act" for sake of brevity) is bad in law and on facts.
GROUNDS RELATING ALLOWANCE OF DECUTION OF RS. 9,41,015/- U/S. 8OP(2)(d):
1 In the facts and circumstances of the case and especially in law, the Ld. CIT(A) has erred in not allowing deduction u/s 80P(2)(d) amounting to Rs. 9,41,015/-, being interest income from Co- operative Banks contending that the income received by the appellant is from cooperative banks and not co-operative societies.
2 The Ld. CIT(A) erred in in not appreciating the fact that The Shamrao Vithal Co-op.
Bank Ltd. (SVC Bank) and Saraswat Co. Operative Bank are registered under The Multi-State Co-operative Societies Act, 2002
and the Maharashtra State Co. Operative Bank is registered under the Maharashtra Co. Operative Societies Act, 1960. 2.3 The Ld. CIT(A) erred in relying on Supreme Court decision having different facts and not considering juri ictional judgments having same issue and facts as that of appellant.”
The rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld.AR) of the assessee submitted that assessee is a co-operative housing society. While filing return of income, the assessee in its computation of total income claimed deduction of Rs.9,41,015/- under section 80P(2)(d) of the Act. The assessee received interest on fixed deposit with (i) The Saraswat Co-operative Bank of Rs.834,576/- (ii) The Shamrao Vithal Co-operative Bank of Rs.42,655/- (iii) The Maharashtra State Co-operative Bank of Rs.63,784/-. The Assessing Officer (AO) while
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Pratap Heritage Co-operative Housing Society Ltd.
passing assessment order disallowed such deduction under section 80P(2)(d), which was upheld by ld CIT(A). The learned AR of the assessee submitted that in series of decision by Mumbai Tribunal, it has been held that co-operative banks are primarily a co-operative society. Thus, interest or dividend received from such Co-operative
Banks are eligible for deduction under section 80P(2)(d). The figure of interest is not disputed by lower authorities. In fact, the grounds of appeal raised by assessee is covered in favour of the assessee. To support his contentions, the learned AR of the assessee also relied upon the decision of Karnataka High Court in PCIT vs. Totagars Co- operative Sale Society, (2017) 392 ITR 74 (Karnataka), decision of Mumbai Tribunal in the case of Pathare Prabhu Co-operative Housing
Society Ltd. vs. ITO, in ITA No.1346/Mum./2023 dated 27.07.2023. 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
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Pratap Heritage Co-operative Housing Society Ltd.
for deduction under section 80P(2)(d). 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 25/03/2025. GIRISH AGRAWAL
ACCOUNTANT MEMBER PAWAN SINGH
JUDICIAL MEMBER
MUMBAI, DATED: 25/03/2025
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