ROYAL INDL ESTATE CO OP SOC LTD,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX - 20(1), PIRAMAL CHAMBER, LALBAUG, PAREL, MUMBAI
Facts
The assessee, a co-operative society, claimed exemption under Section 80P(2)(d) for interest income earned from deposits with co-operative banks and societies. The Assessing Officer disallowed this claim, relying on a Karnataka High Court decision, a view upheld by the CIT(A).
Held
The Tribunal noted that similar issues have been decided in favor of the assessee by this Tribunal, citing other ITAT and Kerala High Court decisions that allow such deductions. Therefore, the Tribunal followed these precedents.
Key Issues
Whether interest income earned by a co-operative society from deposits with co-operative banks and societies is eligible for deduction under Section 80P(2)(d) of the Income Tax Act, 1961.
Sections Cited
80P(2)(d), 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D ‘ BENCH
Before: SHRI AMIT SHUKLA & SHRI GAGAN GOYAL
PER AMIT SHUKLA (J.M):
The aforesaid appeal has been filed by assessee against order dated 6.9.2023, passed by the National Faceless Appeal Centre (NFAC), Delhi for the quantum of assessment passed u/s. 143(3) of the Income Tax Act, 1961 (‘the Act’) for Assessment Year (AY) 2018-
ITA NO. 3792/Mum/2023 AY. 2018-19 Royal Indl. Estate Co op soc. Ltd. 19. The only issue raised is regard to addition of Rs.28,08,568/- made by the Learned Assessing Officer (Ld. AO) on account of the dis-allowance of deduction u/s. 80P(2)(d) of the Act.
The assessee is a co-operative society having income from house property and income from other sources. The Ld. AO noted that the assessee has an interest of Rs.28,08,568/- on bank fixed deposits and savings account, which was claimed as exempt u/s. 80P(2)(d) received from various co-operative societies and banks. The details of which are as under:
Accordingly, the Ld. AO relying upon the decision of Hon’ble Karnataka High Court in the case of Principal Commissioner of Income Tax, Hubballi vs. Totagars Co-operative Sale Society (2017) 83 taxmann.com 140 (Karnataka) disallowed the claim u/s. 80P(2)(d). The Learned CIT (A) too has confirmed the said addition following the same judgment of Hon’ble Karnataka High Court.
ITA NO. 3792/Mum/2023 AY. 2018-19 Royal Indl. Estate Co op soc. Ltd. 4. Before us it has been brought on record that this issue has come before this Tribunal in several cases wherein after discussing the same decision of Hon’ble Karnataka High Court, claim of section 80P(2)(d) has been allowed on interest received from co-operative banks or the co-operative societies. For sake of ready reference, the decision of ITAT order No. 1195/Mum/2023, dated 10.7.2023, in case of Rustomjee Aspiree Premises Co-op. Soc. Ltd., wherein the Tribunal after referring to various decisions has allowed the claim of deduction. Mostly according to the decision of Hon’ble Kerala High Court in the case of PCIT vs. Percoorkada Services Company Bank Ltd. (2022) 442 ITR 141 (Kerala), the claim of deduction of interest income is allowed.
In the result, appeal of the assessee is allowed.
Order pronounced on 29th February, 2024
Sd/- /- Sd/-SdSd// (GAGAN GOYAL) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated: 29/02/2024 Mini Pawar, Sr.P.S Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, //True Copy//
(Asstt. Registrar) ITAT, Mumbai
