PRAGATI PREMISES CO OP SO LTD,MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE - 22(2), MUMBAI

ITA 6358/MUM/2024

AI Insights

The case involves Pragati Premises Co-operative Society Ltd., the appellant, contesting the disallowance of a deduction under section 80P(2)(d) of the Income Tax Act, which pertains to interest income earned from a Cooperative Bank. The Assessing Officer (AO) in Mumbai initially disallowed this claim, which was upheld by the CIT(A). The appellant challenged this decision at the ITAT, citing favorable precedents that supported the entitlement of cooperative societies to such deductions. The Tribunal considered various precedents, including the Supreme Court's decision in Mavilayi Services Cooperative Bank Limited, and other ITAT decisions that favored the appellant's position.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32231 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: Mavilayi Services Cooperative Bank Limited Vs. Ld. CIT(A), Murude Sahakari Patsanstha Maryadit Vs. ITO, Kaliandas Udyog Bhavan Premises Cooperative Society Ltd. Vs. ITO, Land End Cooperative Housing Society Ltd. Vs. ITO, Totgar's Sale Cooperative Society Ltd. of Hon'ble Supreme Court
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P. D. CHOUGULE
• Assessee Lawyers: DHARAN GANDHI
• Section: 234B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “(SMC)” Bench, Mumbai. Before Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM) ITA No. 6358/MUM/2024 (Assessment Year : 2017-18) Pragati Premises Co- operative Society Ltd. Society Office Pragati Premises CHSL, 316 N.M. Joshi Marg, Lower Parel East Mumbai-400 011. Vs. ACIT, Circle 22(2) Room No. 315 3rd Floor, Piramal Chamber, Lal Baugh, Parel Mumbai-400 012. PAN : AAAAP4642A Appellant Respondent Assessee by : Shri Dharan Gandhi Revenue by : Shri P.D. Chougule Date of Hearing : 19/02/2025 Date of pronouncement : 24/02/2025 O R D E R Per Omkareshwar Chidara (AM) :- In the above captioned appeal, the appellant-society filed following grounds of appeal :- 1. The Ld. ADDL/JCIT(A)-3, Kolkata, erred in confirming the addition of Rs. 16,43,987/- made by the Ld. Mumbai, being disallowance of deduction under section 80P(2)(d) of the Act. 2. The Ld. AO, Mumbai, has erred in the levying interest under section 234A, 234B and 234C of the Act. 3. The Ld. AO, has erred in initiating penalty proceeding u/s 270A of the Act. 2. From the assessment order, it is observed that the Ld. AO disallowed the claim of appellant-society under section 80P(2)(d) of the Act relating to interest income earned from the Cooperative Bank. The Ld. CIT(A) confirmed the addition for the reasons mentioned in his order by placing reliance on M/s. Totgar’s Sale Cooperative Society Ltd. of Hon'ble Supreme Court. Pragati Premises Co-operative Society Ltd. 2 3. Aggrieved by the orders of the lower authorities, the appellant-society filed an appeal before the ITAT with the Grounds of appeal mentioned in page No. 1 of this order. 4. In this appeal, Ld. AR of the appellant has submitted that the issue is covered in favour of the appellant now after decision of Mavilayi Services Cooperative Bank Limited Vs. Ld. CIT(A) (431 ITR 1)(SC). The Ld. AR has filed copy of the decision rendered by the ITAT, Mumbai in the case of Murude Sahakari Patsanstha Maryadit Vs. ITO (ITA No. 901/Mum/2024 for A.Y. 2018-19) in which the ITAT relied on the decisions of Mavilayi Services Cooperative Bank Limited (supra) and gave relief to the appellant-society and held that the society is entitled for deduction u/s. 80P(2)(d) of the Act. Apart from the Supreme Court decision, Ld. AR has argued that the coordinate Benches of Mumbai have consistently taken decision that the cooperative societies are entitled for deduction u/s. 80P(2)(d) of the Act in various decisions like Kaliandas Udyog Bhavan Premises Cooperative Society Ltd. Vs. ITO (ITA No. 6547/Mum/2017) and in the case of Land End Cooperative Housing Society Ltd. Vs. ITO (ITA No. 3566/Mum/2014) etc. 5. The Ld. DR has relied on the orders of lower authorities and placed reliance the decision of Totgar’s Sale Cooperative Society of Hon'ble Supreme Court. 6. Heard rival submissions. In the case of Kaliandas Udyog (supra), the Coordinate Bench considered and distinguished the decision of Hon'ble Supreme Court of Totgar’s Sale Cooperative Society and held that the appellant society is entitled for deduction under section 80P(2)(d) of the Act. As the issue is squarely covered by the decision of Hon'ble Supreme Court in the case of Mavilayi Services Cooperative Bank Limited (supra) and several other decisions relied upon by Ld. AR of the appellant, it is hereby held that the appellant-society is entitled for deduction u/s. 80P(2)(d) of the Act. Pragati Premises Co-operative Society Ltd. 3 5. 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. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai PS "