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Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI RATNESH NANDAN SAHAY
Assessee by : Shri. Rajesh Sanghvi- C.A. Revenue by : Shri. Prashant Mahajan- Sr. A.R. Date of hearing : 17.04.2024 Date of pronouncement : 30.04.2024 O R D E R Per: Ratnesh Nandan Sahay, Accountant Member:
1. 1. Present appeal has been filed against the order of the Ld. CIT (Appeals) passed u/s 250 of the Income Tax Act [the ‘Act’ in short] vide DIN & its Order No. ITBA/NFAC/S/250/2023-24/1055925705(1) dated 11/9/2023 for the assessment year 2016-17.
2. Though, several grounds of appeal have been raised by the appellant, the main issue involved in this case is that the claim for deduction of
During the course of the hearing, the assessee submitted paper books and placed reliance on various decisions of the ITAT, Mumbai on this issue and also placed specific reliance on the decision of Blue Rose Industrial Premises Cooperative Society v. CIT Appeal, ITAT No. 4059 of 2023 for the assessment year 2020- 21 in which one of the Members of this bench had decided the issue in the favour of the assessee. The extract of the decision was given as under:
“13. We find that the learned CIT(A) has placed reliance upon the decisions of the Hon’ble Karnataka High Court in Pr. CIT v. Totagars Co-operative Sales Society [2017] taxmann.com 140/395 ITR 611, wherein it was held that interest earned by the assessee, a co-operative Society from surplus deposits kept with a co-operative Bank, was not eligible for deduction under section 80P(2)(d) of the Act. We find that in an earlier decision the Hon’ble Karnataka High Court in Pr. CIT v. Totagars Co-operative Sale Society
Therefore, in view of the above, we uphold the plea of the assessee and direct the AO to grant the deduction under section 80P(2)(d) of the Act to the assessee in respect of interest income earned from investment with Co-operative Banks. Accordingly, we set aside the impugned order passed by the learned CIT(A) for the assessment year 2018-19. As a result, grounds raised by the assessee are allowed."