ACIT, CPC, BANGALORE V. SILVER SAND COOP HOUSING SOC LTD., MUMBAI

MA 117/MUM/2024

AI Insights

The case involves a miscellaneous application by the revenue against the Silver Sand Cooperative Housing Society, challenging the Tribunal's earlier decision which allowed the society a deduction under Section 80P(2)(d) of the Income Tax Act. The revenue contended that the society's circumstances differed from those in the precedent case of Totagars Cooperative Sale Society, where the society was engaged in providing credit facilities. The Tribunal, referencing decisions from similar cases, maintained that the society was eligible for the deduction, dismissing the revenue's application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712489 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2011-2012
• Other Referred Cases: Kshatriya Gadkari Maratha Cooperative Credit Society Ltd. Vs. ITO, Kaliandas Udyog Bhavan Premises Co-op Hsg Society vs. ITO
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI; DR
• Keywords: Business income

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER BEFORE & SHRI RAHUL CHAUDHARY, HON’BLE JUDICIAL MEMBER M.A. No. 117/Mum/2024 I.T.A. No. 1425/Mum/2023 Assessment Year: 2011-12 ACIT, CPC Vs Silver Sand Coop Housing Society Building No. 12, Silver Sands CHS Ltd., S.V. Road Piramal Nagar, Goregaon (W) Mumbai - 400062 [PAN: AACAG6531F] अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : None Revenue by : Shri Leyaqat Ali Aafaqui, Sr. D/R सुनवाई की तारीख/Date of Hearing : 25/07/2025 घोषणा की तारीख /Date of Pronouncement: 30/07/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This miscellaneous application by the revenue is directed towards the order of the Tribunal in ITA No. 1425/Mum/2023 dated 22/09/2023. 2. The sum and substance of the miscellaneous application is as under:- “Since the assessee in the current case is a co-operative housing society unlike Totagars Cooperative Sale Society which was in the business of providing credit facilities to its members, the facts are different. Therefore, the interest earned on deposit of surplus funds by the assessee in current case is not its' business income and therefore deduction under Sec. 80P(2)(d) is not allowed irrespective of whether the deposits were kept with cooperative banks or co-operative society.” 3. None appeared on behalf of the assessee in spite of notice. The ld. D/R was heard at length. Case records carefully produced. We find that Printed from counselvise.com M.A. No. 117/Mum/2024 2 while allowing the appeal of the assessee, the Tribunal has based its judgement on various decisions of Coordinate Benches which were in favour of the assessee, allowing deduction u/s 80P(2)(d) of the Act. In particular, the decisions in the cases of Kshatriya Gadkari Maratha Cooperative Credit Society Ltd. Vs. ITO in ITA No. 3646 & 3647/Mum/2018 dated 26/04/2019 and Kaliandas Udyog Bhavan Premises Co-op Hsg Society vs. ITO in ITA No. 6547/Mum/2017 dated 25/04/2018. Basis the decisions of the coordinate benches, the Tribunal came to the conclusion that the assessee is eligible for deduction is 80P(2)(d) of the Act. Merely because there are decisions in favour of the revenue, would not make the order of the Tribunal rectifiable u/s 254(2) of the Act. Therefore, we do not find any merit in this miscellaneous application of the revenue and the same is accordingly dismissed. 4. In the result, miscellaneous application filed by the revenue is dismissed. Order pronounced in the Court on 30th July, 2025 at Mumbai. Sd/- Sd/- (RAHUL CHAUDHARY) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 30/07/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs Printed from counselvise.com M.A. No. 117/Mum/2024 3 आदेश की \u0014ितिलिप अ\u0019ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "