PROGRESSIVE AMBAR CHS LTD,NAVI MUMBAI V. INCOME TAX OFFICER, NAVI MUMBAI

ITA 2720/MUM/2025

AI Insights

The case involves the Progressive Ambar Co-operative Housing Society Ltd, which appealed against the order of the National Faceless Appeal Centre (NFAC) that had disallowed a deduction under section 80P(2)(d) of the Income Tax Act. The deduction in question was related to interest income received from co-operative banks, amounting to Rs.2,98,259/-. The primary legal issue was whether the interest income from co-operative banks qualifies for deduction under section 80P(2)(d). The Tribunal decided to hear the appeal on merits despite the initial rejection due to the delay in filing, citing the small amount involved and the precedence of similar cases.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668985 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Other Referred Cases: Palm Court M CHS vs DCIT, Oberoi Springs Co-operative Housing Society Ltd vs ITO
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM KRISHN KEDIA
• Assessee Lawyers: SANJIV BRAHME
• Keywords: Period of limitation

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA No.2720/Mum/2025 (Assessment year : 2020-21) Progressive Ambar co- operative Housing Society Ltd Sector 5, Kopar Khairane Navi Mumbai-400 709 PAN : AACAP0456G vs CIT (Appeals), Mumbai / National Faceless Appeal Centre (NFAC), Delhi APPELLANT RESPONDENT Assessee by : Shri Sanjiv Brahme Respondent by : Shri Ram Krishn Kedia, (SR. DR) Date of hearing : 19/06/2025 Date of pronouncement : 25/06/2025 O R D E R This appeal filed by the assessee is arising out of the order of the Learned National Faceless Appeal Centre (NFAC) [hereafter, Ld.CIT(A)], dated 21/03/2025 for the assessment year 2020-21. 2. At the outset, I notice that appeal of the assessee was rejected by the Ld.CIT(A) as the same was filed beyond the period of limitation and the application seeking condonation of appeal was also rejected. 3. I have heard the counsels for both the sides and perused the materials placed on record, decision cited before me and also the orders passed by the revenue authorities. From the records, I notice that the dispute on merit relates to 2 ITA 2720/Mum/2025 Progressive Ambar CHS Ltd disallowance of deduction under section 80P(2)(d) of Rs.2,98,259/- on account of interest income received by the assesse society from co-operative banks. To my mind, this issue is now a covered one and since the issue raised by the assesse is covered; therefore, taking a sympathetic view of the matter, I am inclined to decide the present appeal on merits considering the smallness of the amount involved in the present appeal. 4. As to the facts of the case, the assesse filed return of income declaring income under the head, “Income from business or profession” of Rs.2,98,280/- which consists of income from interest from co-operative banks of Rs.2,98,259/-. The said interest has been received from Abhyudaya Co-operative Bank Ltd, Maharashtra State Co-operative Bank Ltd and Saraswat Co-operative Bank Ltd and after claiming deduction under section 80P(2)(d) of the Act, the total income was Rs.20/- only. But since the said deduction has been disallowed by the Ld.AO and upheld by the Ld.CIT(A). Feeling aggrieved, the assesse has raised this issue before the Bench. 5. I notice that this issue has already been dealt with by several co-ordinate benches of the Tribunal, more particularly, in the case of Palm Court M CHS vs DCIT in ITA No.561/Mum/2021 order dated 09/09/2022 and in the case of Oberoi Springs Co-operative Housing Society Ltd vs ITO 786/Mum/2019 decided on 28/08/2020. Having gone through the facts and circumstances and taking into consideration the decisions of the co-ordinate benches of the Tribunal, I am of the view that the issue raised in the resent appeal with regard to denial of deduction under section 80P(2)(d) is squarely covered by the decision of the co-ordinate benches. Therefore, considering the said decisions, which are identical in nature, I 3 ITA 2720/Mum/2025 Progressive Ambar CHS Ltd direct the Assessing Officer to allow the deduction under section 80P(2)(d) of Rs.2,98,259/- to the assesse. Consequently, appeal of the assessee is allowed. 6. In the result, the appeal filed by the assesse is allowed. Order pronounced in the open court on 25th day of June, 2025. Sd/- (SANDEEP GOSAIN) JUDICIAL MEMBER Mumbai, िदनांक/Dated: 25/06/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथ /The Appellant , 2. ितवादी/ The Respondent. 3. आयकर आयु\u0014 CIT 4. िवभागीय ितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 5. गाड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai "