ROHAN LEHER CO OPERATIVE HOUSING SOCIETY LTD,PUNE V. INCOME TAX OFFICER WARD 2(2), PUNE

ITA 2866/PUN/2024

AI Insights

The case involves Rohan Leher Cooperative Housing Society Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the denial of deduction under section 80P of the Income-tax Act, 1961 for interest income from Cooperative Banks. The Tribunal considered precedents where similar deductions were allowed and found that Cooperative Banks, being essentially Cooperative Societies with a banking license, fall under the purview of section 80P(2)(d). The Tribunal's decision was influenced by previous rulings that supported the assessee's claim, leading to the allowance of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314592 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Other Referred Cases: Oberoi Spring Cooperative Housing Society Limited in ITA No.598/Mum/2023, The Navyug Cooperative Housing Society Ltd. Vs. DCIT in ITA No.14/Mum/2024, Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd., Vs. ITO in ITA No.1365/PUN/2023, The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA No.84/PAN/2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK MESHR AM
• Assessee Lawyers: SAYALI VIPRADAS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2866/PUN/2024 Assessment Year : 2018-19 Rohan Leher Cooperative Housing Society Limited, Sr.No.54, Hissa No.1, 2 & 6, Baner, Pune 411 045 Maharashtra PAN : AABAR9731P Vs. ITO, Ward-2(2), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee is directed against the order dated 15.12.2023 framed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of Assessment Order dated 19.01.2021 passed u/s.143(3) r.w.s.143(3A) & 143(3B) of the Act. 2. Registry has information that there is delay of 305 days in filing the appeal before the Tribunal. Application for condonation along with the affidavit has been filed by the assessee explaining the reasons for delay. 3. After hearing both the sides and considering the reasons giving rise to the delay and also placing reliance on the judgment of Hon’ble Supreme Court in the case of Collector, Land Appellant by : Smt. Sayali Vipradas Respondent by : Shri Abhishek Meshram Date of hearing : 13.02.2025 Date of pronouncement : 05.05.2025 ITA No.2866/PUN/2024 Rohan Leher Cooperative Housing Society Ltd. 2 Acquisition vs. Mst. Katiji & Ors. (1987) 2 SCC 107) we condone the delay of 305 days and admit the appeal for adjudication. 4. The only issue is regarding denial of deduction u/s.80P of the Act for the interest income from Cooperative Banks amounting to Rs.29,57,547/-. Ld. Counsel for the assessee referring to the decision of Coordinate Bench in the case of Oberoi Spring Cooperative Housing Society Limited in ITA No.598/Mum/2023 order dated 08.05.2023 and also in the case of The Navyug Cooperative Housing Society Ltd. Vs. DCIT in ITA No.14/Mum/2024 order dated 10.05.2024 and various other decisions of Coordinate Benches placed in the case law paper book stated that interest income earned from deposits/ investments with Cooperative Banks is also eligible for deduction u/s.80P(2)(d) of the Act. Ld. Departmental Representative failed to controvert this contention. 5. We have heard the rival contentions and perused the record placed before us. Undisputedly, the assessee has earned interest of Rs.29,57,547/- from investments with Cooperative Banks and the deduction claimed u/s.80P(2)(d) has been denied by the ld.CIT(A). 6. Section 80P(2)(d) of the Act provides that the sum received in respect of any income by way of interest or dividend derived by Cooperative Society from its investment with any other Cooperative Society, the whole of such income is eligible for deduction u/s.80P of the Act. We observe that section 80P(2)(d) of the Act refers to the interest from Cooperative Society but it has been consistently held by this Tribunal (Pune Benches) that ITA No.2866/PUN/2024 Rohan Leher Cooperative Housing Society Ltd. 3 Cooperative banks are basically Cooperative Societies except that they get license for doing the banking business. We find that this Tribunal in case of Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd., Vs. ITO in ITA No.1365/PUN/2023, dated 01.01.2024 dealing with similar issue after placing reliance on another decision of this Tribunal in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA No.84/PAN/2018, dated 27.05.2022 has held that the interest earned from deposits with Cooperative Banks are also eligible for deduction u/s.80P(2)(d) of the Act. We therefore respectfully following the above referred decisions hold that the assessee is eligible for deduction u/s.80P(2)(d) of the Act for the alleged interest income earned from Cooperative Banks. Findings of the ld. CIT(A) is set-aside and effective grounds of appeal raised by the assessee are allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced on this 05th day of May, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 05th May, 2025. Satish ITA No.2866/PUN/2024 Rohan Leher Cooperative Housing Society Ltd. 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "