NAVAPURA URBAN CO OP CREDIT AND CONSUMER SOCIETY LTDIT CONSUMER,SURAT vs. ASSESSMENT UNIT INCOMETAX DEPARTMENT, DELHI

Assessee represented by Shri Hiren Vepari, CA Department represented by Shri Vinod Kumar, Sr. DR Date of institution of appeals 19/10/2023 Date of hearing 20/12/2023 Date of pronouncement 20/12/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by the assessee are directed against the separate orders of National Faceless Appeal Centre, Delhi (NFAC)/Commissioner of Income Tax (Appeals), (in short, the ld. CIT(A)) both dated 22/09/2023 for the Assessment Year (AY) 2018-19 and 2020-21 respectively. In both these appeals, the assessee has raised similar grounds of appeal

. Certain facts in both these years are common, therefore, with the consent of parties both these appeals were clubbed, heard together and are being decided by this consolidated order to avoid the conflicting decision. For appreciation of facts, the appeal for the A.Y. & 712/Srt/2023 Navapura Co Op Credit Consumer Society Ltd. Vs ITO 2018-19 in ITA No. 711/Srt/2023 is treated as a “lead case”. In this appeal, the assessee has raised following grounds of appeal: “(I)Non-granting of deduction u/s 80P(2)(d) (1) The CIT(A) was not justified in confirming denial of benefit u/s 80P(2)(d) from interest and dividend derived from a co-op bank to the appellant co-op society particularly when the AO reclassified the interest and dividend under the “Income from other sources. (2) With prejudice to the above, the ld. CIT(A) was not justified in denying relief u/s 80P(2)(a)(i) by holding that interest and dividend earned from co-op bank was from “Business or Profession”. (3) In any case, the appellant is entitled to the benefit u/s 80P(2)(a)(i) if interest and dividend derived from co-op bank is held to be business income. (4) On the facts of the case and law, the appellant ought to be granted deduction u/s 80P(2)(d) (II) Miscellaneous: (1) All of the above grounds are prejudice to one another. (2) The appellant craves leave to add, alter or vary any of the grounds of appeal.”

2. Rival submission of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the assessee has raised multiple grounds of appeal, still he pressed for seeking relief of deduction under Section 80P(2)(d) of the Income Tax Act, 1961 (in short, the Act). The ld. AR of the assessee further submits that the assessee is a cooperative credit and consumer society. The assessee received interest income on deposit with cooperative bank and with nationalized bank. The assessee is confining his claim for deduction under Section 80P(2)(d) of the Act in respect of interest income earned from cooperative banks. The cooperative banks i.e. Surat District Cooperative Bank and Sutex Cooperative Bank. The ld.