HIRANANDANI POWAI PLAZA PREMISES CO OPERATIVE SOCIETY LIMITED ,MUMBAI V. ITO, WARD 41(1)(2), MUMBAI

ITA 6852/MUM/2024

AI Insights

The case revolves around the dispute concerning the eligibility of Hiranandani Powai Plaza Premises Cooperative Society Ltd. to claim a deduction under section 80P(2)(d) of the Income Tax Act for interest earned on deposits with cooperative banks. The Income Tax Officer had disallowed this deduction, which was upheld by the CIT(A). However, the Tribunal, referencing decisions from coordinate Benches and the Supreme Court, overturned this decision, granting the deduction to the appellant society.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471275 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Other Referred Cases: Totgar's Cooperative Sale Society Ltd. vs. Hon'ble Supreme Court, Kalinandas Udyog Bhavan Premises Cooperative Ltd. vs. ITO, Mavilayi Service Cooperative Bank Ltd. vs. Hon'ble Supreme Court
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL GUPTA
• Assessee Lawyers: ADITYA RAMACHANDRAN

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “SMC” Bench, Mumbai. Before Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM) ITA No. 6852/MUM/2024 (Assessment Year : 2020-21) Hiranandani Powai Plaza Premises Cooperative Society Ltd. CTS No. 5, Hiranandani Garden Powai, Mumbai-400 076. Vs. ITO Ward 41(1)(2) Kautilya Bhavan BKC, Bandra East Mumbai-400051. PAN : AAAAH7484C Appellant Respondent Assessee by : Shri Aditya Ramachandran Revenue by : Shri Anil Gupta Date of Hearing : 25/02/2025 Date of pronouncement : 03/03/2025 O R D E R Per Omkareshwar Chidara (AM) :- In this above captioned appeal, the sole ground of appeal taken by the appellant is that Ld. CIT(A) erred in confirming the disallowance of deduction claimed by the appellant society under section 80P(2)(d) of the I.T. Act in respect of interest earned on the deposits made with cooperative banks being cooperative societies. 2. At the outset, it is observed from the order of Ld. CIT(A) at para 17, page 25, reliance was placed on the decision of Hon'ble Supreme Court in the case of Totgar’s Cooperative Sale Society Ltd. and the same decision of Karnataka High Court for the proposition that the appellant is not eligible for deduction under section 80P(2)(d) of the Act on the interest earned from cooperative banks. 3. The Ld. AR of the appellant relied on a catena of decisions held in favour of the appellant on the same issue, by the coordinate Benches of Mumbai distinguishing the decision of Hon'ble Supreme Court case of M/s. Totgar’s Cooperative Sale Society (supra) as the facts are different. The Ld. Hiranandani Powai Plaza Premises Cooperative Society Ltd. 2 AR relied on the decision of Kalinandas Udyog Bhavan Premises Cooperative Ltd. Vs. ITO (2018) 94 taxmann.com 15(Mum Trib) and M/s. Raheja Chambers Premises Cooperative Society Ltd. (ITA No. 630/Mum/2024) where the coordinate Benches considered all the decisions on this issue including the decision of Hon'ble Supreme Court in the case of M/s. Totgar’s Cooperative Sale Society (supra) and held that the appellant cooperative society is entitled to deduction under section 80P(2)(d) of the Act. The Ld. AR of the appellant has also relied on the decision of Hon'ble Supreme Court in the case of Mavilayi Service Cooperative Bank Ltd. (Civil Appeal No. 7343- 7350 dated 12.1.2021), which has set rest to the controversy and the appellant is entitled to the deduction claimed. 4. Both the parties are heard and the decisions relied on by them were perused and considered. As the issue is squarely covered by the decision of several coordinate Benches of Mumbai including Kaliandas Udyog Bhavan (supra) and the decision of Hon'ble Apex Court in the case of Mavilayi Service Cooperative Bank Ltd. (supra), it is held that the appellant is entitled for deduction under section 80P(2)(d) of the Act. 5. The appeal of the appellant is allowed. Order pronounced in the open Court on 03/03/2025. Sd/- Sd/- (KAVITHA RAJAGOPAL) (OMKARESHWAR CHIDARA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 03/03/2025 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai Hiranandani Powai Plaza Premises Cooperative Society Ltd. 3 5. Guard file. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai PS "