ITO-34(3)(5), MUMBAI V. THE DOHAD SAIFEE CO-OPERATIVE HOUSING SOCIETY LTD., MUMBAI

MA 19/MUM/2024

AI Insights

The case involves The Dohad Saifee Co-operative Housing Society Limited, which appealed against the order of the Deputy Commissioner of Income Tax/Assistant Commissioner of Income Tax, CPC, Bangalore. The Tribunal's earlier decision in ITA No. 378/MUM/2023 favored the assessee, allowing certain deductions under section 80P(2)(d) of the Income Tax Act. The revenue filed a Miscellaneous Application seeking to withdraw this order, citing a lack of appreciation of relevant High Court decisions and conflicting Tribunal decisions. However, the Tribunal dismissed the MA, affirming its earlier decision and rejecting the revenue's arguments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708678 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2020-2021
• Other Referred Cases: Pr. CIT vs Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn), Pr. CIT vs Totagars Co-operative Sale Society (2017) 392 ITR 74 (Karn), Kshatriy Gadkari Maratha Co-operative Credit Society Ltd. vs ITO (ITA 3464 & 3647/Mum/2018), Kaliandas Udyog Bhavan Premises Co-op HSG Society vs ITO (ITA 6547/Mum/2017), K. Subramanian vs Siemens India Ltd. (1985) 165 ITR 11 (Bombay)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRAVIN SALUNKHE
• Assessee Lawyers: BHUPENDRA SHAH
• Keywords: Co-operative Credit Society

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH MUMBAI BEFORE: SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER MA No. 19/MUM/2024 (Arising out of ITA No. 378/MUM/2023) Assessment Year : 2020–21 The Dohad Saifee Co-operative Housing Society Limited Plot No. 10/6 Dohad Saifee CHS, 9th N.S. Road, J.V.P.D. Scheme, Vile Parle(W), Mumbai- 400049 Vs. The DCIT/ACIT, CPC, Bangalore Kautilya Bhavan, Mumbai-51 PAN/GIR No. AABAT1406F (Appellant) .. (Respondent) Assessee by Shri. Bhupendra Shah Revenue by Shri. Pravin Salunkhe, Sr. DR Date of Hearing 18/07/2025 Date of Pronouncement 18/07/2025 आदेश / O R D E R PER NARENDRA KUMAR BILLAIYA (A.M): This Miscellaneous Application by the revenue is directed towards the order of the Tribunal in ITA No. 378/M/2023 for A.Y. 2020-21. The sum and substances of the present MA read as under: “Therefore, Miscellaneous Application is submitted before Hon'ble \"SMC\" Bench in above mentioned case to consider the letter received from office of Pr. CIT-17, Mumbai MA No. 19/MUM/2024 In ITA No. 378/Mum/2023 The Dohad Saifee Co-op. Hsg. Soc.Ltd. 2 conveying the comments of PCIT-17, Mumbai. Considering the above, a Miscellaneous Application to ITAT for withdrawal of its order in the assessee's case u/s 254(2) of the IT Act for reconsideration on merits on the following grounds is recommended: 1. \"Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT failed to appreciate the decision of the Hon'ble High Court of Karnataka in the case of Pr. CIT vs Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn), which held that a co-operative society would not be entitled to claim of deduction u/s 80P(2)(d) when the interest income is not arising from business operations of assessee and the assessee being a Housing Co-operative Society lending/depositing money is not the business of assessee?\" 2. \"Whether on the fact and circumstances of the case and in law, the Hon'ble ITAT failed to appreciate that questions of law in the case of Pr. CIT vs Totagars Co- operate Sale Society (2017) 395 ITR 611 (Karn) and Pr. CIT vs Totagars Co-operative Sale Society (2017) 392 ITR 74 (Karn) are entirely different?\" 3. \"Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in relying upon Kshatriy Gadkari Maratha Co-operative Credit Society Ltd. vs ITO (ITA 3464 & 3647/Mum/2018) and Kaliandas Udyog Bhavan Premises Co-op HSG Society vs ITO (ITA 6547/Mum/2017), wherein the two Totagars Co-operative Sale Society cases were held as conflicting and therefore decision in favour of assessee was relied upon while deciding the case in favour of the assessee (page 3 of the current ITAT order)?\" 4. \"Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT erred in relying upon Kshatriy Gadkari Maratha Co-operative Credit Society Ltd vs ITO (ITA 3646 & 3647/Mum/2018) and Kaliandas Udyog Bhavan Premoses Co-operative Housing Society vs Ito (ITA 6547/Mum/2017), which relies on K. Subramanian vs Siemens India Ltd. (1985) 165 ITR 11 (Bombay) case, without MA No. 19/MUM/2024 In ITA No. 378/Mum/2023 The Dohad Saifee Co-op. Hsg. Soc.Ltd. 3 appreciating that there is no inherent conflict between the judgments of Hon'ble High Court of Karnataka in cases Pr. CIT vs Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn) and Pr. CIT vs. Totagars Co-operative Sale Society (2017) 392 ITR 74 (Karn) as different questions of law have been decided upon by the Hon'ble Karnataka Court?\" 2. I have given a thoughtful consideration to the contents of the MA carefully. I don’t find any force in the contention raised by the revenue as impugned issued has been decided by several benches of the Tribunal in favour of the assessee and against the revenue and therefore there is no mistake rectifiable, apparent from the record. The MA is accordingly dismissed. Order pronounced in the open court on 18.07.2025. Sd/- (NARENDRA KUMAR BILLAIYA) ACCOUNTANT MEMBER Mumbai; Dated 18/07/2025 Disha Raut, Steno Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// MA No. 19/MUM/2024 In ITA No. 378/Mum/2023 The Dohad Saifee Co-op. Hsg. Soc.Ltd. 4 BY ORDER, (Asstt. Registrar) ITAT, Mumbai "