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Facts
The appellant cooperative society claimed deduction under section 80P(2)(d) on interest earned from deposits made with cooperative banks. The CIT(A) confirmed the disallowance.
Held
The Tribunal held that the appellant is entitled to the deduction under section 80P(2)(d) based on various coordinate bench decisions and the Supreme Court decision in Mavilayi Service Cooperative Bank Ltd.
Key Issues
Whether interest earned by a cooperative society from deposits made with cooperative banks is eligible for deduction under section 80P(2)(d) of the I.T. Act.
Sections Cited
80P(2)(d)
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Income Tax Appellate Tribunal, Mumbai “SMC” Bench, Mumbai.
Before: Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM)
At the outset, it is observed from the order of Ld. CIT(A) at para 17, page 25, reliance was placed on the decision of Hon'ble Supreme Court in the case of Totgar’s Cooperative Sale Society Ltd. and the same decision of Karnataka High Court for the proposition that the appellant is not eligible for deduction under section 80P(2)(d) of the Act on the interest earned from cooperative banks.
The Ld. AR of the appellant relied on a catena of decisions held in favour of the appellant on the same issue, by the coordinate Benches of Mumbai distinguishing the decision of Hon'ble Supreme Court case of M/s. Totgar’s Cooperative Sale Society (supra) as the facts are different. The Ld.
2 Hiranandani Powai Plaza Premises Cooperative Society Ltd. AR relied on the decision of Kalinandas Udyog Bhavan Premises Cooperative Ltd. Vs. ITO (2018) 94 taxmann.com 15(Mum Trib) and M/s. Raheja Chambers Premises Cooperative Society Ltd. (ITA No. 630/Mum/2024) where the coordinate Benches considered all the decisions on this issue including the decision of Hon'ble Supreme Court in the case of M/s. Totgar’s Cooperative Sale Society (supra) and held that the appellant cooperative society is entitled to deduction under section 80P(2)(d) of the Act. The Ld. AR of the appellant has also relied on the decision of Hon'ble Supreme Court in the case of Mavilayi Service Cooperative Bank Ltd. (Civil Appeal No. 7343- 7350 dated 12.1.2021), which has set rest to the controversy and the appellant is entitled to the deduction claimed.
Both the parties are heard and the decisions relied on by them were perused and considered. As the issue is squarely covered by the decision of several coordinate Benches of Mumbai including Kaliandas Udyog Bhavan (supra) and the decision of Hon'ble Apex Court in the case of Mavilayi Service Cooperative Bank Ltd. (supra), it is held that the appellant is entitled for deduction under section 80P(2)(d) of the Act.
The appeal of the appellant is allowed.
Order pronounced in the open Court on 03/03/2025.