Pr. Commissioner of Income Tax and Anr. v. Totagars Cooperative Sale Society

Premium Tower Co Operative Housing Society, Mumbai vs. ITO Ward 24(3)(1), Mumbai

In the result, the appeal filed by the assessee stands partly allowed

Bench: Shri Sandeep Gosain

…1 IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER I.T.A. No. 2436/Mum/2025 Assessment Year: 2010-11 M/s Premium Tower Vs ITO, Ward – 24(3)(1) Co. Op Housing Piramal Chamber, Society Ltd Mumbai – 400 012 O/o the Society Ground Floor, Premium Tower, ChSL, Lion Sole Marg, Oshiwara, Andheri (W) PAN No. AABAP6171B (Appellant) (Respondent) Assessee by Shri Rajesh S. Shah Revenue by Shri Harshad M. Karnik, Sr. DR Date of Hearing 10.09.2025 Date of Pronouncement 03.11.2025 ORDER Per: SHRI. SANDEEP GOSAIN, J.M.: The present appeal has been filed by the revenue chal…

Dindoshi Onkar Co-Operative Housing Society Limited, Mumbai vs. Income Tax Officer, Ward 41(3)(1), Mumbai

In the result, both the appeals are under consideration are allowed on the same terms noted above

Bench: Shri Narender Kumar Choudhryassessment Year: 2014-15 & Assessment Year: 2015-16 Dinodoshi Onkar Co- Centralised Processing Operative Housing Society Centre/Income Tax Limited Officer, Ward 41(3)(1), Building No. 17, Dindoshi Onkar Mumbai Vs. Co-Operative Housing Society Kautilya Bhavan, Bandra Limited, Gen. A.K. Vaidya Marg, Kurla Complex (East), Shivdham, Malad (East), Mumbai – 400051. Mumbai- 400097 Pan: Aaaad2593A (Appellant) (Respondent) Present For: Assessee By : Shri Rajesh Athavale Revenue By : Shri Praveen K. Srivastav, Ld. Sr.D.R. Date Of Hearing : 09.10.2025 Date Of Pronouncement : 30.10.2025 O R D E R Per : Narender Kumar Choudhry: These Appeals Have Been Preferred By The Assessee Against The Order Dated 24.06.2025, Impugned Herein, Passed By The National Faceless Appeal Center (Nfac)/ Ld. Additional Joint Commissioner Of Income Tax (Appeals) (In Short Ld. Commissioner) U/S 250 Of The Income Tax Act, 1961 (In Short ‘The Act’) For The A.Ys. 2014-15 & 2015-16. 2. Both The Appeals Are Having Involved Identical Facts & Issue, Therefore, For The Sake Of Brevity, The Same Were Heard Together Dindoshi Onkar Co-Operative Housing Society Limited & Are Being Disposed Of By This Composite Order, By Taking Into Consideration The Ita No. 5179/M/2025 (A.Y. 2014-15) As The Lead Case & Result Of The Same Should Be Applicable Mutatis Mutandis To Both The Appeals Under Consideration.

…tive Society, from surplus deposits kept with a Cooperative 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/s Totagars Co-operative Sales Society, [2017] 392 ITR 74 (Karn.) held that according to section 80P(2)(d) of the Act, the amount of interest earned from a Co-operative Society Bank would be deductible from the gross income of the Co-operative Society in order to assess its total income. Thus, there are divergent views of the same Hon’ble High Court on the issue of eligibility of deduction under section…

Kca Cooperative Credit Society Ltd, Mumbai vs. ITO Ward 22(2)(1), Piramal Chambers

Bench: Smt Beena Pillai, Jm & Ms Padmavathy S, Am

…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 [2017] 78 taxmann.com 169/392 ITR 74 held that according to section 80P(2)(d) of the Act, the amount of interest earned from a Co-operative Society Bank would be deductable from the gross income of the Co- operative Society in order to assess its total income. Thus, there are divergent views of the same Hon'ble High Court on the issue of eligibility of deduction under section 80P(2)(…

Bsel Tech Park Premisies Co Operative Society Ltd, Mumbai vs. Commissioner of Income Tax (Appeal), Mumbai

In the result, the appeal filed by the Assessee is allowed

Bench: Shri Om Prakash Kant & Shri Narender Kumar Choudhryassessment Year: 2018-19 M/S. Bsel Tech Park Commissioner Of Income Premisies Co-Operative Tax, Society Ltd., 4Th Floor, Tower 6, Bsel Tech Park, Vs. Vashi Station Complex, Opp Infotech Park, Vashi Vashi Maharashtra – 400 075 Navi Mumbai – 400 703 Pan: Aacab1755G (Appellant) (Respondent) Present For: Assessee By : Ms. Naina Chaurasia, Ld. C.A. Revenue By : Shri Leyaqaat Ali Aafaqui, Ld. Sr. Dr Date Of Hearing : 01.09.2025 Date Of Pronouncement : 30.09.2025 O R D E R Per : Narender Kumar Choudhry: This Appeal Has Been Preferred By The Assessee Against The Order Dated 26.05.2025, Impugned Herein, Passed By The National Faceless Appeal Center (Nfac)/ Ld. Commissioner Of Income Tax (Appeals) (In Short Ld. Commissioner) U/S 250 Of The Income Tax Act, 1961 (In Short ‘The Act’) For The A.Y. 2018-19. 2. In The Instant Case, The Assessing Officer (Ao) Disallowed The Deduction Claimed U/S 80P(2)(D) Of The Act On Account Of Interest Income Earned From Co-Operative Banks To The Tune Of Rs.28,30,300/- As Detailed Below:

…e Bank, was not eligible for deduction under section 80P(2)(d) of the 6 M/s. BSEL Tech Park Premisies Co-operative Society Ltd Act. We find that in an earlier decision the Hon’ble Karnataka High Court in Pr.CIT v/s Totagars Co-operative Sales Society, [2017] 392 ITR 74 (Karn.) held that according to section 80P(2)(d) of the Act, the amount of interest earned from a Co-operative Society Bank would be deductible from the gross income of the Co-operative Society in order to assess its total income. Thus, there are divergent views of the same Hon’ble High Court on the issue of eligibility of deduction under section…

Elco Arcade Res and Non Res. Premises Co Op Society Limited, Mumbai vs. ITO Ward 23(1)(3), Mumbai

In the result, appeal filed by the assessee is allowed for statistical purposesin above terms

Bench: Shriom Prakash Kant & Shri Raj Kumar Chauhanelco Arcade Res & Non Res Ito 23(1)(3), Premisies Co-Operative Society Vs. Piramal Chamber, Ltd. Mumbai – 400 012 Elco Arcade, Hill Road, Bandra West, Mumbai-400 050 Pan: Aaaae8544N (Appellant) (Respondent) Assessee Represented By : Shripratik Jain, Ld. Ar Department Represented By : Shri Pushkarajbhangepatil, Ld. Dr Date Of Conclusion Of Hearing : 13.08.2025 Date Of Pronouncement : 23.09.2025

…(iii) Kaliandas Udyog Bhavan Pemises Co-op. Society Ltd. v. ITO , 21(2)(1), Mumbai We further find that the Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income Tax and Anr. v. Totagars Cooperative Sale Society [2017] 78 taxmann.com 169/392 ITR 74 (Karnataka) and Hon'ble High Court of Gujarat in the case of State Bank Of India v. CIT [2016] 72 taxmann.com 64/290 CTR 129/389 ITR 578/241 Taxman 163 (Gujarat), had held, that the interest income earned by the assessee on its investments with a co-operative bank would be eligible for claim of deduction under Sec. 80P(2)(d) of the Act. Still furt…

Dadar Avanti Co-Operative Housing Society Limited, Dadar Mumbai vs. Income Tax ITO Ward 22(1)(6), Mumbai

In the result, the appeal filed by the assessee stands allowed

Bench: Shri Sandeep Gosain

…ive Society, from surplus deposits kept with a Cooperative 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/s Totagars Co- operative Sales Society, [2017] 392 ITR 74 (Karn.) held that according to section 80P(2)(d) of the Act, the amount of interest earned from a Co-operative Society Bank would be deductible from the gross income of the Co-operative Society in order to assess its total income. Thus, there are divergent views of the same Hon’ble High Court on the issue of eligibility of deduction under section…

Thane Zilla Vidyasevak Sahakari Patpedhi Ltd, Mumbai vs. ITO, Ward 3(4), Mumbai

In the result, the appeal of the assessee is allowed

Bench: Ms. Kavitha Rajagopal & Smt. Renu Jauhrithane Zilla Vidyasevak Vs. Commissioner Of Income Sahakari Patpedhi Ltd. Tax (Appeals), National Through Mr. Sudhir Evram Faceless Appeal Centre/ Ghagas Chairman 1St Floor, Ward 3(4) Sundera Plaza, Near Sanai Ashar It Park, Neheru Mangal Hall, Kalyan (West), Nagar, Wagle Industrial Kalyan-421301. Estate, Thane West, Thane- 400604. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aadft4365L Appellant .. Respondent

…m 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 (2017) 78taxmann.com 169/392 ITR 74 held that according to section 80P(2)(d) of the Act, the amount of interest earned from a Co-operative Society Bank would be deductable from the gross income of the Co-operative Society in order to assess its total income. Thus, there are divergent views of the same Hon'ble High Court on the issue of eligibility of deduction under section 80P(2)(d…

ITO-23.2.1, Mumbai vs. Mig Co-Op. Housing Society Group II Limited, Mumbai

Bench: Shri Sandeep Singh Karhailshri Girish Agrawalincome Tax Officer, Ward – 23(2)(1) Room No.512, 5Th Floor, Piramal Chambers, Lalbaug, ............... Appellant Mumbai - 400012 V/S Mig Co – Op Housing Society Group Ii Ltd., B-32, Kalpataru Sparkle, Mig Colony, ……………… Respondent Gandhi Nagar, Bandra East, Mumbai - 400051 Pan : Aaaam8129P Assessee By : Shri Yogesh Thar Shri Surajsingh Devda Revenue By : Shri Surendra Mohan, Sr.Dr

…e and in the law, the Ld. CIT(A) has erred in allowing the deduction u/s 80P(2)(d) of Rs. 1,90,42,168/- even if Hon'ble Supreme Court as well as Hon'ble Karnataka High Court in the case of Totagar Cooperative Sale Society Ltd. (2010) 322 ITR 283(SC) and (2017)392 ITR 74(Kar) held that the income by way of interest earned by deposit or investment of idle or surplus funds does not change its character irrespective of the fact whether such income of interest is earned from a schedule bank ora co-operative bank and thus, clause (d) of section 80P(2) of the Act would not apply in case of co-operative bank? (iv) Whethe…

Shiv Sagar Business Premises Co Op Soc. Ltd, Mumbai vs. Income Tax Officer Ward 22(3)(1), Mumbai

In the result, the appeal filed by the assessee stands allowed

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

…f the Hon’ble Supreme Court in Kerala State Co-operative Agricultural and Rural Development Bank Ltd. in Civil Appeal No. 10069 of 2016 dated 14.09.2023 and the decision of the Hon’ble Karnataka High Court in PCIT vs. Totgars Co-operative Sale Society [(2017) 392 ITR 74 (Kar.)]. 4. Upon careful consideration of the rival submissions and the material placed on record, we find that the reliance placed by the learned CIT(A) on the decision of the Hon’ble Supreme Court in the case of Kerala State Co-operative Agricultural and Rural Development Bank Ltd. (supra) is wholly misplaced. The said decision pertained to the…

B.S.N.L Employees Junior Co Operative Credit Society Limited, Mumbai vs. ITO Ward 17(1)(2), Mumbai

In the result, the Assessee’s appeal is allowed

Bench: Shri Narender Kumar Choudhry & Shri Omkareshwar Chidaraassessment Year: 2017-18

…om surplus deposits kept with a Cooperative 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 |2017) 78taxmann.com 169/392 ITR 74 held that according to section 80P(2)(d) of the Act, the amount of interest earned from a Co-operative Society Bank would be deductable from the gross income of the Cooperative Society in order to assess its total income. Thus, there are divergent views of the same Hon'ble High Court on the issue of eligibility of deduction under section 80P(2)(d)…

Marathwada Nagari Sahakari Path Sanstha Maryadit, Kalyan vs. Assessing Officer, Ward 1(1), Kalyan

In the result, appeal of the assessee is allowed

Bench: Ms. Kavitha Rajagopal & Shri Prabhash Shankarmarathwada Nagari Sahakari V/S. Assessing Officer, Ward – Path Sanstha Maryadit, बनाम 1(1), Mohan Plaza, Wayle Shop No. 06, 1St Floor, Nagar, Khadakpada, Kalyan Dhamnikar Plaza, Bhiwandi, – 421301, Maharashtra Thane – 421302, Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaaam9150E Appellant/अपीलार्थी .. Respondent/प्रतिवादी

…y has invested idle funds and on this presumption, he has relied on the Hon’ble Supreme Court decision in the case of Totgar Co-op. Sales Society Ltd. and latest Hon’ble Karnataka High Court decision in the case of PCIT, Hubli v/s. Totgar Co-op. Sales Society 392 ITR 74 (ITA No- 100069/2016). However, the said judgments are not applicable in Appellant’s case as the facts, circumstances and nature of business activities and statutory provisions with regard to investment are different between Appellant Society and Totgar Society. 5. On the facts and in the circumstances of the case and in law, the Ld. PCIT- 1, Than…

Veej Company Sevakanchi Sahakari Path Sanstha Ltd., Kalyan vs. Assessing Officer, Ward 3(1), Kalyan

In the result, appeal of the assessee is allowed

Bench: Ms. Kavitha Rajagopal & Shri Prabhash Shankarveej Company Sevakanchi V/S. Assessing Officer, Ward – Sahakari Path Sanstha बनाम 3(1), Rani Mansion, 2Nd Ltd.,Shramik Sahakar, Usha Floor, Kalyan Murbad Road, Sankul Valiper Road, Oak Thane - 421 301, Baug, Thane - 421301, Maharashtra Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaaam2266M Appellant/अपीलार्थी .. Respondent/प्रतिवादी

…y has invested idle funds and on this presumption, he has relied on the Hon’ble Supreme Court decision in the case of Totgar Co-op. Sales Society Ltd. and latest Hon’ble Karnataka High Court decision in the case of PCIT, Hubli v/s. Totgar Co-op. Sales Society 392 ITR 74 (ITA No- 100069/2016). However, the said judgments are not applicable in Appellant’s case as the facts, circumstances and nature of business activities and statutory provisions with regard to investment are different between Appellant Society and Totgar Society. 4. On the facts and in the circumstances of the case and in law, the Ld. PCIT-1, Thane…