DREAM HOUSE CO OPERATIVE HOUSING SOCIETY LIMITED ,MUMBAI vs. ITO WARD 29(1)(3), MUMBAI

The sole ground taken by the appellant Cooperative Housing Society relates to denial of deduction u/s. 80P(2)(d) of the I.T. Act by Ld. AO.

Aggrieved by the denial of deduction as mentioned above, the appellant filed an appeal before Ld. CIT(A) who has confirmed the addition made by the Ld. AO. As the appellant society did not get relief from the first appellate authority, further appeal was filed before the ITAT stating that the National Faceless Assessment Centre (NFAC) erred in confirming the addition made on interest earned on fixed deposits is not eligible for deduction u/s. 80P(2)(d) of the Act.

During the hearing before the Bench, Ld. AR of the appellant-society filed written submissions stating that the appellant society is entitled for deduction u/s. 80P(2)(d) of the Act and in support of the written submission, Ld. AR of the appellant relied on various decisions of Pathare Prabhu Cooperative Housing Society Ltd. (153 taxmann.com 714); Sai Ankur

Ld. DR relied on the orders of the lower authorities, where the appellant-society was denied deduction u/s. 80P(2)(d) of the Act.

After hearing rival submissions, it is decided that the issue is squarely covered by the decision of Hon'ble Supreme Court in the case of Mavilayi Services Cooperative Bank Limited (supra) and also various decisions of the Coordinate Benches of Mumbai, addition made by the Ld. AO is deleted and it is held that the appellant society is eligible for deduction u/s. 80P(2)(d) of the Act.

The appeal of the appellant-society is allowed.