BELLEVISTA CO OP HSG SOCIETY LTD,NAVI MUMBAI vs. ITO WARD 28(1)(1), NAVI MUMBAI

PDF · subscribers
ITA 6970/MUM/2024Status: DisposedITAT Mumbai27 February 2025AY 2017-20184 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 the interest income earned by the assessee, a co-operative housing society, from Saraswat Co-operative Bank is eligible for deduction under Section 80P(2)(d) of the Income Tax Act. The Tribunal noted that the Hon'ble Karnataka High Court in the case of Tatagars Co-op. Sale Society (supra) held that for the purpose of Section 80P(2)(d), a co-operative bank should be considered a co-operative society. The Mumbai Tribunal in Kaliandas Udyog Bhavan Premises Co-op. Society Ltd. and Lands End Co-op. Housing Society Ltd. v. ITO had also taken a similar view. The Tribunal distinguished the Supreme Court decision in Tatagars Co-op. Sale Society (2010) Taxmann 282 (SC), stating that the disallowance in that case was under Section 80P(2)(a) and not applicable to the facts of the present case. Therefore, respectfully following the decisions of the Co-ordinate Benches, the Tribunal directed the Assessing Officer to allow the deduction of Rs. 17,25,339/-.

What were the facts?

The assessee, Bellevista Co-op. HSG Society Ltd., filed an appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai Bench, against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 22.10.2024, for Assessment Year 2017-18. The assessee, a co-operative housing society, claimed a deduction of Rs. 17,25,339/- under Section 80P(2)(d) of the Income Tax Act, 1961, on account of interest received from Saraswat Co-operative Bank. The Assessing Officer had disallowed this deduction, and the NFAC upheld the disallowance. The appeal was heard on 27.02.2025 and pronounced on the same day.

What were the issues?

1. Whether the interest income earned by a co-operative housing society from a co-operative bank is eligible for deduction under Section 80P(2)(d) of the Income Tax Act, 1961. The assessee contended that a co-operative bank is primarily a co-operative society and that the issue is covered by various decisions of the Tribunal and the Hon'ble Karnataka High Court in PCIT v. Tatagars Co-op. Sale Society [2017] 78 taxmann.com 169 (Karnataka). The assessee also relied on decisions of the Mumbai Benches in Kaliandas Udyog Bhavan Premises Co-operative Society Ltd. Vs ITO and Lands End Co-op. Housing Society Ltd. v. ITO. The revenue, through its Senior Departmental Representative, supported the order of the lower authorities.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d),Section 80P(2)(a)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

िनधा�रतीकीओरसे /Assessee by Ms. Vidya Jaya Kumar राज�कीओरसे /Revenue by Sh. Anil Gupta SR DR सुनवाईकीतारीख/Date of hearing 27.02.2025 उद्घोषणाकीतारीख/Date of pronouncement 27.02.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as “NFAC/Ld.CIT(A)”] dated 22.10.2024for assessment year (AY) 2017-18. Though, the assessee has raised multiple grounds of appeal

, however in our considered view the substantial grounds of appeal relate to disallowance under section 80P(2)(d) of Income Tax Act (Act).

2. Rival submissions of both the parties have been heard and record perused. The Ld. Authorized Representative (AR) submits that assessee is a co- operative housing society. The assessee, while filing return of income claimed deduction 80P(2)(d) of Rs.17,25,339/- on account of interest received from Saraswat Co-op. Bank. The Co-operative Bank is primarily a co-operative society as has been held in a series of decision by Tribunal. The issue/grounds Mr. Bellevista Co-op. HSG Society Ltd. of appeal raised by the assessee is covered by the series of President Mumbai Tribunal as well as other Co-ordinate Benches of Tribunal wherein it has been consistently held that Co-operative Banks are primarily Co-operative Bank. Even Hon’ble Karnataka High Court PCIT v. Tatagars Co-op. Sale Society [2017] 78 taxmann.com 169 (Karnataka) also held that for the purpose of section 80P(2)(d) a co-operative bank should be considered as a co-operative society. The Ld. AR submitted that she has also placed on record various decisions of Mumbai Benches on the same issue. The Ld. AR submits that there is no dispute about the interest received by the assessee from Saraswat Co-operative Bank of Rs.17,25,339/- which has been recorded by the Assessing Officer in para 2 of assessment order. The ld AR of the assessee relied on the following decisions;  PCIT v. Tatagars Co-op. Sale Society [2017] 78 taxmann.com 169 (Karnataka),  Kaliandas Udyog Bhavan Premises Co-operative Society Ltd. Vs ITO,ITA No.6547/Mum/2017,  Lands End Co-op. Housing Society Ltd. v. ITO in dated 15.01.2016.

3.

On the other hand, the Ld Senior Departmental Representative (Sr. DR) for the Revenue supported the order of lower authorities.

4.

We have considered the rival submissions of both the parties. We have also deliberated of various case laws relied upon by the Ld. AR of the assessee. We find that assessee is a co-operative housing society. The assessee earned interest income from Saraswat co-operative bank as has been recorded in para-2 of assessment order. We find that Hon’ble Karnataka High Court in the case of Tatagars Co-op. Sale Society (supra) on similar set of facts, while 2 Mr. Bellevista Co-op. HSG Society Ltd. considering almost similar question of law held that for the purpose of section 80P(2)(d) a co-operative bank should be considered as co-operative society. We find that Mumbai Tribunal in Kaliandas Udyog Bhavan Premises Co-op. Society Ltd. (supra) and Lands End Co-op. Housing Society Ltd. v. ITO (supra) has also took similar view and allowed similar deduction under section 80P(2)(d) to those assesses. Though, the Assessing Officer in his order has referred the decision of Hon’ble Supreme Court in Tatagars Co-op. Sale Society, without mentioning the complete its citation, Civil Appeal Number or date of order. On considering the facts, we are of the view that the Assessing Officer is referring the decision of Hon’ble Supreme Court in Tatagars Co-op. Sale Society (2010) Taxmann 282 (SC), however, the ratio of said decision is not applicable on the facts of case in hand, the disallowance in the said case was under section 80P(2)(a), which is related to the activities of the assessee, thus based on different facts.Thus, respectfully following the decision of the Co-ordinate Bench, we direct the Assessing Officer to allow the deduction under section 80P(2(d) with respect to interest income earned by assessee from Saraswat co-operative bank of Rs.17,25,339/-. In the result, the substantial grounds of appeal

raised by the assessee is allowed.

5. In the result, the appeal of the assessee is allowed. Order announced on 27/02/2025 in the Open Court during hearing.

Sd/- Sd/- (OMKARESHWAR CHIDARA) (PAWAN SINGH) लेखासद�/Accountant Member �ाियकसद�/Judicial Member Mumbai Dated:27/02/2025 Rahul Sharma Sr. P.S* Mr. Bellevista Co-op. HSG Society Ltd. आदेशकी�ितिलिपअ�ेिषत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant  ��थ�/ The Respondent  आयकरआयु�/ CIT  िवभागीय�ितिनिध, आयकरअपीलीयआिधकरण, / DR, ITAT, Mumbai  गाड�फाईल/ Guard File 

More judgments on Section 80P(2)(d)

All 2,440 judgments and leading authorities on Section 80P(2)(d) →

Recent GST High Court judgments

Search GST case law →