COOVER VILLA CO-OPERATIVE HOUSING SOCIETY LIMITED ,MUMBAI vs. ITO, WARD 20(1)(1), MUMBAI
Income Tax Appellate Tribunal, Mumbai “K(SMC
Before: Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM) Coover Villa Cooperative Housing Society Ltd. 101, 801, Jamer Jamshed Road, Dadar Parsi Colony, Mumbai- 400 014. Vs. ITO Ward 20(1)(1) Piramal Chambers Lower Parel Mumbai-400 012. PAN : AABAC0489M Appellant
Per Omkareshwar Chidara (AM) :-
The only ground of appeal taken before the ITAT by the appellant cooperative housing society is that Ld. CIT(A) erred in confirming the action of CPC in denying the deduction claimed under section 90P(2)(d) of the I.T.
Act and prayed that the claim may be allowed.
From the order of Ld. CIT(A), it is observed that reliance was placed by him on the decision of Hon'ble Supreme Court in the case of Totgar’s Cooperative Sale Society Ltd. (322 ITR 293)(SC) and the addition made by the Ld. AO was confirmed.
Aggrieved by the orders of Ld. AO and Ld. CIT(A), and appeal was preferred to ITAT with the sole ground mentioned in para 1 of this order.
During the hearing proceedings, the Ld. AR of the appellant has relied on 2 decisions of the Coordinate Bench, i.e., Pantnagar Ashtvinayak CHSL
Coover Villa Cooperative Housing Society Ltd.
2
(ITA No. 1848/Mum/2022 and The MIG Cooperative Housing Society
(Bandra East) Group IV Ltd. (ITA No. 1215/Mum/2024) and pleaded that the issue is now squarely covered by the Coordinate Bench decisions. In both these decisions, the Coordinate Bench of Mumbai has considered the decision of Hon'ble Supreme Court in the case of Totgar’s Cooperative Sale
Society and held that the Cooperative Society is entitled to deduction u/s.
80P(2)(d) of the Act. In the case of Pantnagar CHSL (supra), the Coordinate
Bench has considered the decision of Kaliandas Udyog Bhavan Premises
Cooperative Society (94 Taxman.com 15)(Mum), which has distinguished the decision of Hon'ble Supreme Court’s decision of Totgar’s Sale Cooperative
Society and held that the appellant society entitled for deduction under section 90P(2)(d) of the Act. Now, the issue is settled after the Hon'ble
Supreme Court rendered its decision in the case of Mavilayi Service
Cooperative Bank Ltd. Vs. CIT (123 taxamnn.com 161)(SC), where it was held that interest earned by way of deposits in cooperative banks is exempt under section 80P(2)(d) of the Act. This decision of Hon'ble Supreme Court was followed by the Coordinate Bench in the above case of The MIG
Cooperative Society (supra).
The Ld. DR relied on the orders of lower authorities, especially on the order of Ld. CIT(A) where this first appellate authority placed reliance on the decision of M/s. Totgar’s Cooperative Sale Ltd. of Hon'ble Apex Court and confirmed the decision.
Heard both sides. Respectfully following the decision of Coordinate Bench which was followed the decision of Hon'ble Supreme Court in the case of Mavilayi Cooperative Bank Ltd. (supra), it is held that the appellant society is entitled to the deduction u/s. 80P(2)(d) of the Act in the impugned case and the order of Ld. CIT(A) is reversed.
Coover Villa Cooperative Housing Society Ltd.
The appeal of the appellant is allowed. Order pronounced in the open Court on 24/02/2025. (KAVITHA RAJAGOPAL) ACCOUNTANT MEMBER Mumbai; Dated: 24/02/2025
Copy of the Order forwarded to :
The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
BY ORDER,
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