NEELKANTH GARDENS CO-OP HOUSING SOCIETY LIMITED,MUMBAI V. INCOME TAX OFFICER WARD 27(2)(4), MUMBAI

ITA 939/MUM/2025

AI Insights

The case involves Neelkanth Gardens Co-operative Housing Society Limited, which appealed against the order of the ADDL/JCIT (A)-2 Visakhapatnam/National Faceless Appeal Centre/CIT(A), which had disallowed a deduction claimed under section 80P(2)(d) of the Income Tax Act, 1961. The deduction pertained to interest received from a co-operative bank, amounting to Rs.20,20,211. The Assessing Officer (AO) had disallowed the deduction on the grounds that co-operative banks are commercial banks and not within the purview of co-operative societies. The Tribunal, however, found that this issue had been consistently ruled in favor of the assessee in previous decisions, recognizing co-operative banks as co-operative societies.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470798 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Assessment Year: 2017-2018
• Other Referred Cases: Sai Ankur Co-operative Housing Society Limited vs. ITO (2025) 171 taxmann.co, 44 (Mumbai -Trib), PCIT Vs Totagars Co-operative sales Society (2017) 78 taxmann.com 169 (Karnataka)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN UNAVEKAR
• Assessee Lawyers: R. GANESH; R. KIRTHIVASAN
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “K (SMC)” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 939/MUM/2025 (AY: 2017-18) Neelkanth Gardens Co-operative Housing Society Limited, BKSD Marg, Govandi East, Mumbai – 400088 Maharashtra. PAN No. AAAAN8883F ……………. Appellant Versus ITO – 27(2)(4), Mumbai-400020 ……………. Respondent Assessee by : Shri R. Ganesh & R. Kirthivasan – CA/AR Revenue by : Shri Kiran Unavekar, Sr. DR Date of Hearing – 20/03/2025 Date of Order – 27/03/2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by the assessee is directed against the order passed by the ADDL/JCIT (A)-2 Visakhapatnam, /National Faceless Appeal Centre/ CIT(A) dated 27.01.2025 passed under section 250 of the Income Tax Act, 1961 (“the Act”) for the assessment year (A.Y.) 2017-18. The assesse has raised grounds of appeal relate to deduction under section 80P(2)(d). 2. Rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld. AR) of the assessee submits that while 2 ITA No. 939/Mum/2025 Neelkanth Gardens Co-operative Housing Society Ltd. filing return of income the assessee claimed deduction of Rs.20,20,211/- under section 80P(2)(d) of the Act on account of interest received from co-operative bank. The AO disallowed such deduction by taking view that co-operative banks are a commercial bank and does not fall under the purview of co-operative society. 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. The ld. AR relied upon the decision of Mumbai Tribunal in Sai Ankur Co-operative Housing Society Limited vs. ITO (2025) 171 taxmann.co, 44 (Mumbai -Trib) and Karnataka High Court in PCIT Vs Totagars Co-operative sales Society (2017) 78 taxmann.com 169 (Karnataka). 3. On the other hand, learned senior departmental representative (Sr.DR) for the Revenue supported the order of lower authorities. 4. We have considered the submissions of both the parties and have gone through the orders of lower authorities. We have also deliberated on various case laws relied upon by the learned AR of the assessee. 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 coordinate bench in Sai Ankur Co-operative Housing Society Limited vs. ITO (supra) and Karnataka High Court in PCIT Vs Totagars Co-operative sales Society (supra) 3 ITA No. 939/Mum/2025 Neelkanth Gardens Co-operative Housing Society Ltd. No contrary facts or law is brought to our notice to take other view. Thus, the grounds of appeal raised by the assessee are allowed. 5. In the result, the grounds of appeal raised by the assessee are allowed. Order pronounced in the open Court on 27/03/2025. Sd/- GIRISH AGRAWAL ACCOUNTANT MEMBER Sd/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, DATED: 27/03/2025 Prabhat 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 "