CEAT EMPLOYEES CO OPERATIVE CREDIT SOCIETY LIMITED ,MUMBAI V. ITO EXEMPTION WARD 41(2)(1), THANE

ITA 3354/MUM/2025

AI Insights

The case involves Ceat Employee Co-operative Credit Limited appealing against the order passed by the CIT(A) which disallowed a deduction of Rs. 6,09,346 claimed under section 80P(2)(d) of the Income Tax Act for the assessment year 2021-22. The deduction was claimed on account of interest received from three different cooperative banks. The Central Processing Centre (CPC) initially processed the return and made adjustments, disallowing the deduction. The Tribunal, after considering the submissions and precedents, directed the assessing officer to verify the details of the interest income from the cooperative banks and allow the deduction if found eligible.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714550 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2021-2022
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SURENDRA MOHAN
• Assessee Lawyers: MAHESH MADKHOLKAR

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 3354/Mum/2025 (AY : 2021-22) (Physical hearing) Ceat Employee Co-operative Credit Limited, C/o Ceat Limted, Bahndup West, S.O.Mumbai-400078. PAN: AAAAC 0547 M Vs. ITO Exemption, Ward, Thane Appellant Respondent Assessee by Shri Mahesh Madkholkar, CA Revenue by Shri. Surendra Mohan, Sr. DR Date of institution of appeal 13/05/2015 Date of Hearing 21/07/2025 Date of Pronouncement 04/08/2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 2. This appeal by the assessee is directed against the order passed by the CIT(A) dated 13.03.2025 for assessment year (A.Y.) 2021-22. Though, the assessee has raised multiple grounds of appeal, however, in my considered view, the substantial ground of appeal raised by them relates to disallowance under section 80P(2)(d)of Rs.6,09,346/. 3. The rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld.AR) of the assessee submits that the assessee claimed deduction of Rs. 6,09,346/-under section 80P(2)(d) of the Act on account of interest received from three different co- operative banks. The assessee received interest from Mumbai District Central Printed from counselvise.com ITA No. 3354/Mum/2025(AY 2021-22) Ceat Employee Co-operative Credit Limited 2 Cooperative Bank, Maharashtra State Cooperative bank, TJSB Sahakari Bank Limited and Union Bank of India. All such interest is shown in the computation of total income. The assessee has claimed deduction under section 80P(2)(d) of interest Mumbai District Central Cooperative Bank, Maharashtra State Cooperative bank, TJSB Sahakari Bank Limited only. The return was processed by Central Processing Centre (CPC) vide intimation dated 19.10.202 and made adjustment/ disallowed such deduction. The figure of claim/ deduction under section 80P(2)(d) is mentioned in para-12 of page No.2 of order or CPC. 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. At the time of hearing, the ld AR of the assessee was asked to show the bifurcation of such interest income from all three cooperative bank. The ld AR of the assessee submist that is can be verify by assessing officer.To support his submissions, the ld AR of the assessee relied on the decision of Tribunal in Land Ends CHS Ltd Vs ITO (ITA no. 3566/Mum/2024), Sea Green Cooperative Housing Society Vs ITO (ITA No. 1342/Mum/2017 and ITO Vs MIG Co-operative Society (ITA No. 7327/Mum/2019). 4. On the other hand, learned senior departmental representative (Sr.DR) for the Revenue supported the order of lower authorities. Printed from counselvise.com ITA No. 3354/Mum/2025(AY 2021-22) Ceat Employee Co-operative Credit Limited 3 5. We have considered the submissions of both the parties and have gone through the orders of lower authorities. 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 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 Gujarat High Court in Gujarat High Court in the case of Surat Vankar Sahakari Sangh Ltd. (2016) 72 taxmann.com 169; Allahabad High Court in the case of U.P. Cooperative Sugar Factories (2013) 17 taxmann.com 58; Punjab Haryana High Court in the case of Haryana Co-operative Sugar Mills Ltd. (1989) 46 Taxman 28 and Pune Tribunal in Niphad Nagari Sahakari Pata Sanstha Ltd. in ITA No. 1336/PN/2011 and in CIT ITO V Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha (ITA No. 5006/2013)(Karnataka HC). 6. I find that the exact details of interest income from all three cooperative bank i.e. Mumbai District Central Cooperative Bank, Maharashtra State Cooperative bank, TJSB Sahakari Bank Limited is not discernible form the record, thus, the jurisdictional assessing officer is directed to verify the component of interest from all three cooperative bank and allow full relief to the assessee on the deduction under section 80P(2)(d) of the Act. Thus, the grounds of appeal raised by the assessee is allowed for statistical purpose. Printed from counselvise.com ITA No. 3354/Mum/2025(AY 2021-22) Ceat Employee Co-operative Credit Limited 4 7. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose. Order pronounced in the open Court on 04/08/2025. Sd/- /- S S/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, DATED: 04/08/2025 Self 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 Printed from counselvise.com "