DREAM HOUSE CO OPERATIVE HOUSING SOCIETY LIMITED ,MUMBAI V. ITO WARD 29(1)(3), MUMBAI

ITA 201/MUM/2025

AI Insights

The case revolves around the denial of deduction under section 80P(2)(d) of the Income Tax Act by the Assessing Officer (AO) to the Dream House Cooperative Housing Society Limited, which was confirmed by the CIT(A). The society appealed to the ITAT after the National Faceless Assessment Centre (NFAC) upheld the AO's decision regarding the interest earned on fixed deposits. The society argued that they were entitled to the deduction, citing several precedents. The Departmental Representative (DR) supported the lower authorities' decisions. However, the ITAT, referencing the Supreme Court's decision and other Mumbai Bench decisions, ruled in favor of the society, allowing the deduction.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471284 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Assessment Year: 2016-2017
• Other Referred Cases: Pathare Prabhu Cooperative Housing Society Ltd. (153 taxmann.com 714), Sai Ankur Dream House Cooperative Housing Society Limited (171 taxmann.com 44), Guru Anand Cooperative Housing Society Ltd. (ITA No. 5691 & 5695/Mum/2024), Ceat Employees Cooperative Credit Society Ltd. (ITA No. 159/Mum/2023), Grand Paradi Cooperative Housing Society Ltd. (ITA No. 4675/Mum/2023), M/s. Mavilayi Service Cooperative Bank Ltd. (431 ITR 1)(SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN UNAVEKAR
• Assessee Lawyers: PRAJAKTA AROTE

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “K(SMC)” Bench, Mumbai. Before Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM) ITA No. 201/MUM/2025 (Assessment Year : 2016-17) Dream House Cooperative Housing Society Limited Plot No. 91, Sector 9 Ulwe, Navi Mumbai 400 706. Vs. ITO Ward 29(1)(3) C-10/104, BKC Bandra East Mumbai-400 051. PAN : AABAD2668M Appellant Respondent Assessee by : Ms. Prajakta Arote Revenue by : Shri Kiran Unavekar Date of Hearing : 19/02/2025 Date of pronouncement : 24/02/2025 O R D E R Per Omkareshwar Chidara (AM) :- The sole ground taken by the appellant Cooperative Housing Society relates to denial of deduction u/s. 80P(2)(d) of the I.T. Act by Ld. AO. 2. Aggrieved by the denial of deduction as mentioned above, the appellant filed an appeal before Ld. CIT(A) who has confirmed the addition made by the Ld. AO. As the appellant society did not get relief from the first appellate authority, further appeal was filed before the ITAT stating that the National Faceless Assessment Centre (NFAC) erred in confirming the addition made on interest earned on fixed deposits is not eligible for deduction u/s. 80P(2)(d) of the Act. 3. During the hearing before the Bench, Ld. AR of the appellant-society filed written submissions stating that the appellant society is entitled for deduction u/s. 80P(2)(d) of the Act and in support of the written submission, Ld. AR of the appellant relied on various decisions of Pathare Prabhu Cooperative Housing Society Ltd. (153 taxmann.com 714); Sai Ankur Dream House Cooperative Housing Society Limited 2 Cooperative Housing Society Ltd. (171 taxmann.com 44); Guru Anand Cooperative Housing Society Ltd. (ITA No. 5691 & 5695/Mum/2024); Ceat Employees Cooperative Credit Society Ltd. (ITA No. 159/Mum/2023) and Grand Paradi Cooperative Housing Society Ltd. (ITA No. 4675/Mum/2023). Finally, the Ld. AR of the appellant brought to the notice of this Bench that the issue is now fully covered in favour of the appellant by the decision of Hon'ble Supreme Court in the case of M/s. Mavilayi Service Cooperative Bank Ltd. (431 ITR 1)(SC) where it was held that the appellant is entitled for deduction u/s. 80P(2)(d) of the Act. 4. Ld. DR relied on the orders of the lower authorities, where the appellant-society was denied deduction u/s. 80P(2)(d) of the Act. 5. After hearing rival submissions, it is decided that the issue is squarely covered by the decision of Hon'ble Supreme Court in the case of Mavilayi Services Cooperative Bank Limited (supra) and also various decisions of the Coordinate Benches of Mumbai, addition made by the Ld. AO is deleted and it is held that the appellant society is eligible for deduction u/s. 80P(2)(d) of the Act. 6. The appeal of the appellant-society is allowed. Order pronounced in the open Court on 24/02/2025. Sd/- Sd/- (KAVITHA RAJAGOPAL) (OMKARESHWAR CHIDARA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 24/02/2025 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. Dream House Cooperative Housing Society Limited 3 BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai PS "