Bellevista Co Op Hsg Society Ltd… vs ITO | ITAT Mumbai 2025

ि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.

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

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

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

Cases cited in this judgment