INCOME TAX OFFICER, MUMBAI V. GREEN ACRES CO-OPERATIVE HOUSING SOCIETY LIMITED, MUMBAI

ITA 5411/MUM/2024

AI Insights

The case involves the Income Tax Officer, Mumbai as the appellant and Green Acres Co-operative Housing Society Limited as the respondent. The dispute centers on the deduction allowed under Section 80P(2)(d) of the Income Tax Act, 1961, concerning interest earned from deposits in a Co-operative Bank. The Assessing Officer initially made an addition under Section 68 of the Act, questioning the source of the income. The CIT(A) later allowed the appeal of the Assessee, which the Revenue challenged in the Tribunal. The Tribunal found that the CIT(A) did not adequately consider the Assessing Officer's findings and thus set aside the CIT(A)'s order, directing a fresh decision on the matter.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33351 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE
• Keywords: Set aside; Opportunity of being heard
• Section: 147; 144; 250; 68; 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 5411/MUM/2024 (Assessment Year: 2012-2013) Income Tax Officer, Mumbai Room No.601, 6th Floor, Piramal Chambers, Lalbaug, Parel, Mumbai – 400012, Maharashtra.…………. Appellant Green Acres Co-operative Housing Society Limited 325, Lokhandwala Complex, Andheri (West), Mumbai - 400053 Maharashtra. [PAN:AABAG9964F] Vs …………. Respondent Appearance For the Appellant/Department For the Respondent/Assessee : : Shri Bhangepatil Pushkaraj Ramesh Shri Kumar Kale Date Conclusion of hearing Pronouncement of order : : 25.03.2025 27.03.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member: 1. The present appeal preferred by the Revenue is directed against the order, dated 21/08/2024, passed by the National Faceless Appeal Centre (NFAC), New Delhi [hereinafter referred to as ‘the CIT(A)’] under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as ‘ the Act’] whereby the Ld. CIT(A) had allowed the appeal against the Assessment Order, dated 19/12/2019, passed under Section 144 read with Section 147 of the Act for the Assessment Year 2012-2013. 2. The Revenue has raised following grounds of appeal : “1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in allowing deduction of ITA No.5411/Mum/2024 Assessment Year 2012-2013 2 Rs.2,94,53,331/- u/s.80P(2)(d) of the Income Tax Act, 1961 in respect of interest earned from deposits from Co-operative bank whereas the deduction allowable u/s.80P(2)(d) is for investments in a co-operative society. 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in allowing deduction of Rs.2,94,53,331/- u/s.80P(2)(d) of the Income Tax Act, 1961 in respect of interest earned on deposits in Co-operative Bank ignoring the purpose of bringing on the statute, provision of sub section (4) to section 80P of the Income Tax Act, 1961.” 3. We have heard both the sides and perused the material on record. 4. The Assessee in the present case claims to be a co-operative society eligible todeduction claim under Section 80P(2)(d) of the Act. On perusal of Assessment Order, dated 19/12/2019, passed under Section 144 read with Section 147 of the Act we find that addition of INR.2,94,63,530/- was made by the Assessing Officer under Section 68 of the Act since the Assessee had failed to provide the source of the aforesaid income/investment of INR.2,94,63,530/- during the assessment proceedings. 5. Being aggrieved, the Assessee had preferred the appeal before the CIT(A) raising the following ground of appeal: “1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in allowing deduction of Rs.2,94,53,331/- u/s.80P(2)(d) of the Income Tax Act, 1961 in respect of interest earned from deposits from Co-operative bank whereas the deduction allowable u/s.80P(2)(d) is for investments in a co-operative society. 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in allowing deduction of Rs.2,94,53,331/- u/s.80P(2)(d) of the Income Tax Act, 1961 in respect of interest earned on deposits in Co-operative Bank ignoring the purpose of bringing on the statute, provision of sub section (4) to section 80P of the Income Tax Act, 1961.” 6. Vide order, dated 21/08/2024, impugned by way of the present appeal, the Learned CIT(A) had allowed the appeal preferred by the ITA No.5411/Mum/2024 Assessment Year 2012-2013 3 Assessee without appreciating the fact that the Assessing Officer had made addition under Section 68 of the Act. This was highlighted by the Learned Departmental Representative during the course of hearing. The Learned Authorities Representative for the Assessee accepted that the Assessing Officer has made addition under Section 68 of the Act. 7. In view of the above, the order, dated 21/08/2024, passed by the Learned CIT(A) is set aside with the directions to decide the grounds raised by the Assessee in appeal before the CIT(A) afresh after taking into consideration the findings of the Assessing Officer pertaining to addition made under Section 68 of the Act. The Assessee is granted liberty to revise grounds raised in appeal before CIT(A). The Learned CIT(A) is directed to grant reasonable opportunity of being heard to the Assessee. In terms of the aforesaid, Ground No.1 and 2 raised by the Revenue are allowed for statistical purpose. 8. In result, the appeal preferred by the Revenue is allowed for statistical purpose. Order pronounced on 27.03.2025. Sd/- Sd/- (Vikram Singh Yadav) Accountant Member (Rahul Chaudhary) Judicial Member मुंबई Mumbai; िदनांक Dated :27.03.2025 Milan,LDC ITA No.5411/Mum/2024 Assessment Year 2012-2013 4 आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. आयकर आयुƅ/ The CIT 4. Ůधान आयकर आयुƅ / Pr.CIT 5. िवभागीय Ůितिनिध ,आयकर अपीलीय अिधकरण ,मुंबई / DR, ITAT, Mumbai 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, सȑािपत Ůित //True Copy// उप/सहायक पंजीकार /(Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, मुंबई / ITAT, Mumbai "