APSARA COOPERATIVE HSG SOC LTD,MUMBAI V. ADDL/JCIT (A)-3 , BENGALURU

ITA 714/MUM/2025

AI Insights

The case involves Apsara Co-operative Housing Society Ltd., which appealed against the order of the CIT(A)/NFAC, Bengaluru, which disallowed a deduction claimed under section 80P(2)(d) of the Income Tax Act, 1961. The deduction was for interest received from a co-operative bank, which the Assessing Officer (AO) had disallowed, viewing co-operative banks as commercial banks and not under the purview of co-operative societies. The Tribunal, referencing previous decisions, overturned the AO's decision, affirming the eligibility of the deduction claimed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33566 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Other Referred Cases: Gundecha Gardens Co-operative Housing Society Limited vs. CIT(A), NFAC, Delhi, Kaliandas Udyog Bhawan Premises Co-operative Society Vs ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH MESHRAM
• Assessee Lawyers: MANOJ MAHIMKAR
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 714/MUM/2025 Assessment Year : 2014-15 Apsara Co-operative Housing Society Ltd., 61/B Apsara CHS Ltd. Nargis Dutta Road, Pali Hill, Bandra East, Mumbai – 400050 Maharashtra. PAN No. AAAAA0071G ……………. Appellant Versus ITO – 22(1)(2), Piramal Chambers, Lalbaug, Parel, Mumbai-400012 ……………. Respondent Assessee by : Shri Manoj Mahimkar-CA/ AR Revenue by : Shri Rajesh Meshram, Sr. DR Date of Hearing – 26/03/2025 Date of Order – 27/03/2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by the assessee is directed against the order passed by the CIT(A)/, Bengaluru / NFAC dated 02.12.2024 passed under section 250 of the Income Tax Act, 1961 (“the Act”) for the assessment year 2014-15. Though the assesse has raised multiple grounds of appeal, however, in our considered view the substantial grounds of appeal relate to deduction under section 80P(2)(d) only. 2 ITA No. 714/Mum/2025 Apsara Co-operative HSGSOC Ltd. 2. The rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld. AR) of the assessee submits that while filing return of income the assessee declared gross total income of Rs.12,99,617/-. In the computation of total income, the assessee claimed deduction of Rs.12,63,517/- under section 80P(2)(d) of the Act on account of interest received from co-operative bank. The AO disallowed such deduction by taking view that co-operative banks are a commercial bank and does not fall under the purview of co-operative society. The ld. AR of the assessee submits that in a series of decision by this bench, it has been consistently held that co-operative banks are primarily a co-operative society and the interest received from such co-operative bank are eligible for deduction under section 80P(2)(d) to support its submission. The ld. AR relied upon the decision of Mumbai Tribunal in Gundecha Gardens Co-operative Housing Society Limited vs. CIT(A), NFAC, Delhi, in ITA No.115/Mum/2023 and in Kaliandas Udyog Bhawan Premises Co-operative Society Vs ITO in ITA No. 6547/Mum/2027. 3. On the other hand, learned senior departmental representative (Sr.DR) for the Revenue supported the order of lower authorities. 4. We have considered the submissions of both the parties and have gone through the orders of lower authorities. We have also deliberated on various case laws relied upon by the learned AR of the assessee. We find that grounds of appeal raised by the assessee is in fact covered by a series of decision by this Bench as well as other Co-ordinate Benches of Tribunal wherein it has been consistently held that Co-operative Banks are primarily co-operative society 3 ITA No. 714/Mum/2025 Apsara Co-operative HSGSOC Ltd. and the interest or dividend earned from such Co-operative Bank are eligible for deduction under section 80P(2)(d). Similar view was taken by coordinate bench in Gundecha Gardens Co-operative Housing Society Limited vs. CIT(A) (supra). No contrary facts or law is brought to our notice to take other view. Thus, the grounds of appeal raised by the assessee are allowed. 5. In the result, the grounds of appeal raised by the assessee are allowed. Order pronounced in the open Court on 27/03/2025. Sd/- GIRISH AGRAWAL ACCOUNTANT MEMBER Sd/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, DATED: 27/03/2025 Prabhat Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai "