BELLEVISTA CO OP HSG SOCIETY LTD,NAVI MUMBAI V. ITO WARD 28(1)(1), NAVI MUMBAI

ITA 6970/MUM/2024

AI Insights

The case involves Bellevista Co-op. HSG Society Ltd., the appellant, contesting a disallowance of a deduction claimed under section 80P(2)(d) of the Income Tax Act for the assessment year 2017-18. The deduction pertained to interest income received from Saraswat Co-operative Bank. The primary legal issue was whether the interest income from a co-operative bank qualifies for deduction under section 80P(2)(d), which allows deductions for income of a co-operative society from its members or other co-operative societies. The Tribunal considered various precedents and the specific provisions of the Income Tax Act, ultimately deciding in favor of the appellant based on established judicial interpretations.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473353 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: PCIT v. Tatagars Co-op. Sale Society [2017] 78 taxmann.com 169 (Karnataka), Kaliandas Udyog Bhavan Premises Co-operative Society Ltd. Vs ITO, ITA No.6547/Mum/2017, Lands End Co-op. Housing Society Ltd. v. ITO in ITA No. 3566/Mum/2014 dated 15.01.2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL GUPTA
• Assessee Lawyers: VIDYA JAYA KUMAR
• Keywords: Question of law

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI OMKARESHWAR CHIDARA,ACCOUNTANT MEMBER आयकरअपीलसं./ITA No. 6970/Mum/2024 (AY 2017-18) (Physical court hearing) Bellevista Co-op. HSG Society Ltd., Plot No. 46, 47, 48, Sector 15, CBD Belapur, Navi Mumbai-400614. [PAN : AAABB 0518 Q] बनाम Vs ITO Ward 28(1)(1), Income Tax Office, 4th floor, Tower No. 6, Vashi Railway Station Complex, Navi Mumbai-400703. अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरतीकीओरसे /Assessee by Ms. Vidya Jaya Kumar राजˢकीओरसे /Revenue by Sh. Anil Gupta SR DR सुनवाईकीतारीख/Date of hearing 27.02.2025 उद ्घोषणाकीतारीख/Date of pronouncement 27.02.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as “NFAC/Ld.CIT(A)”] dated 22.10.2024for assessment year (AY) 2017-18. Though, the assessee has raised multiple grounds of appeal, however in our considered view the substantial grounds of appeal relate to disallowance under section 80P(2)(d) of Income Tax Act (Act). 2. Rival submissions of both the parties have been heard and record perused. The Ld. Authorized Representative (AR) submits that assessee is a co- operative housing society. The assessee, while filing return of income claimed deduction 80P(2)(d) of Rs.17,25,339/- on account of interest received from Saraswat Co-op. Bank. The Co-operative Bank is primarily a co-operative society as has been held in a series of decision by Tribunal. The issue/grounds ITA No. 6970/Mum/2024 Mr. Bellevista Co-op. HSG Society Ltd. 2 of appeal raised by the assessee is covered by the series of President Mumbai Tribunal as well as other Co-ordinate Benches of Tribunal wherein it has been consistently held that Co-operative Banks are primarily Co-operative Bank. Even Hon’ble Karnataka High Court PCIT v. Tatagars Co-op. Sale Society [2017] 78 taxmann.com 169 (Karnataka) also held that for the purpose of section 80P(2)(d) a co-operative bank should be considered as a co-operative society. The Ld. AR submitted that she has also placed on record various decisions of Mumbai Benches on the same issue. The Ld. AR submits that there is no dispute about the interest received by the assessee from Saraswat Co-operative Bank of Rs.17,25,339/- which has been recorded by the Assessing Officer in para 2 of assessment order. The ld AR of the assessee relied on the following decisions;  PCIT v. Tatagars Co-op. Sale Society [2017] 78 taxmann.com 169 (Karnataka),  Kaliandas Udyog Bhavan Premises Co-operative Society Ltd. Vs ITO,ITA No.6547/Mum/2017,  Lands End Co-op. Housing Society Ltd. v. ITO in ITA No. 3566/Mum/2014 dated 15.01.2016. 3. On the other hand, the Ld Senior Departmental Representative (Sr. DR) for the Revenue supported the order of lower authorities. 4. We have considered the rival submissions of both the parties. We have also deliberated of various case laws relied upon by the Ld. AR of the assessee. We find that assessee is a co-operative housing society. The assessee earned interest income from Saraswat co-operative bank as has been recorded in para-2 of assessment order. We find that Hon’ble Karnataka High Court in the case of Tatagars Co-op. Sale Society (supra) on similar set of facts, while ITA No. 6970/Mum/2024 Mr. Bellevista Co-op. HSG Society Ltd. 3 considering almost similar question of law held that for the purpose of section 80P(2)(d) a co-operative bank should be considered as co-operative society. We find that Mumbai Tribunal in Kaliandas Udyog Bhavan Premises Co-op. Society Ltd. (supra) and Lands End Co-op. Housing Society Ltd. v. ITO (supra) has also took similar view and allowed similar deduction under section 80P(2)(d) to those assesses. Though, the Assessing Officer in his order has referred the decision of Hon’ble Supreme Court in Tatagars Co-op. Sale Society, without mentioning the complete its citation, Civil Appeal Number or date of order. On considering the facts, we are of the view that the Assessing Officer is referring the decision of Hon’ble Supreme Court in Tatagars Co-op. Sale Society (2010) Taxmann 282 (SC), however, the ratio of said decision is not applicable on the facts of case in hand, the disallowance in the said case was under section 80P(2)(a), which is related to the activities of the assessee, thus based on different facts.Thus, respectfully following the decision of the Co-ordinate Bench, we direct the Assessing Officer to allow the deduction under section 80P(2(d) with respect to interest income earned by assessee from Saraswat co-operative bank of Rs.17,25,339/-. In the result, the substantial grounds of appeal raised by the assessee is allowed. 5. In the result, the appeal of the assessee is allowed. Order announced on 27/02/2025 in the Open Court during hearing. Sd/- Sd/- (OMKARESHWAR CHIDARA) (PAWAN SINGH) लेखासद˟/Accountant Member Ɋाियकसद˟/Judicial Member Mumbai Dated:27/02/2025 Rahul Sharma Sr. P.S* ITA No. 6970/Mum/2024 Mr. Bellevista Co-op. HSG Society Ltd. 4 आदेशकीŮितिलिपअŤेिषत/ Copy of the order forwarded to :  अपीलाथŎ/ The Appellant  ŮȑथŎ/ The Respondent  आयकरआयुƅ/ CIT  िवभागीयŮितिनिध, आयकरअपीलीयआिधकरण, / DR, ITAT, Mumbai  गाडŊफाईल/ Guard File By order/आदेशसे, सहायकपंजीकार आयकरअपीलीयअिधकरण,Mumbai "