THE VENUS PARKLAND CO-OPERATIVE HOUSING SERVICE SOCIETY LTD.,AHMEDABAD vs. THE ITO, WARD-3(3)(5), AHMEDABAD

ITA 1347/AHD/2025Status: DisposedITAT Ahmedabad10 September 2025AY 2020-21Bench: SHRI SIDDHARTHA NAUTIYAL (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)7 pages
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What did the Tribunal hold?

The Tribunal, following its own precedent for AY 2018-19 in the assessee's case, held that interest income from Fixed Deposits was eligible for set-off against maintenance expenses under the principle of mutuality. The surplus amount, after set-off, was already offered for tax. Therefore, the addition made by the Assessing Officer was deleted.

What were the facts?

The assessee, a co-operative housing society, filed its return for AY 2020-21. The Assessing Officer made an addition of Rs. 25,36,210/- for interest income on Fixed Deposits, rejecting the applicability of the mutuality principle and the set-off of maintenance expenses. The Ld. CIT(A) partly allowed the appeal but upheld the addition. The assessee filed an appeal to the ITAT with a delay of 541 days, which was condoned.

What were the issues?

Whether the mutuality principle applies to interest income earned from fixed deposits by a co-operative housing society and whether such income can be set-off against maintenance expenses.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144A,Section 144B,Section 2(24),Section 2(24)(vii)

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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Sakar Sharma, AR
For Respondent: Shri Suresh Chand Meena, Sr. DR
Hearing: 26.08.2025Pronounced: 10.09.2025

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of National Faceless Appeal Centre (NFAC) [hereinafter referred as ‘CIT(A)’] dated 13.10.2023 for the Assessment Year (A.Y.) 2020-21 in the proceedings under Section 143(3) r.w.s. 144A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

There was a delay of 541 days in filing of this appeal. The assessee has filed an affidavit signed by Sh. Pathik Mehta, Se

The order continues below.

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