THE WOODLAND CO-OPERATIVE HOUSING SOCIETY LTD ,MUMBAI V. DY COMMISSIONER OF INCOME TAX 23(1), MUMBAI , MUMBAI

ITA 2545/MUM/2025

AI Insights

The case involves The Woodland Co-operative Housing Society Ltd., which appealed against the order of the CIT(A) and the adjustment made by the CPC regarding the disallowance of deduction under Section 80P(2)(d) of the Income Tax Act, 1961. The society had claimed a deduction for interest and dividend income from cooperative banks, which was denied initially because the return was filed beyond the due date. However, the Tribunal referenced a previous decision in the society's own case, which held that such disallowances are not permissible if the return is filed within the prescribed time, leading to the setting aside of the CPC's adjustment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707085 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2012-2013
• Appeal Filed On: 12-04-2025
• Other Referred Cases: The Woodland Co-operative Housing Society Ltd ITA No. 2545/MUM/2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAVIN SALUNKHE
• Assessee Lawyers: ASHISH THAKURDESAI
• Keywords: Set aside; FORM 26AS
• Section: 139; 234B; 10AA; 92A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H (SMC)” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAJ KUMAR CHAUHAN (JUDICIAL MEMBER) ITA No. 2545/MUM/2025 Assessment Year: 2012-13 The Woodland Co-operative Housing Society Ltd., 101, Woodland Heights, 23, Dr. Raghunath Road, Bandra (W), Mumbai-400050. Vs. Dy. CIT-23(1), Piramal Chambers, Mumbai-400012. PAN NO. AABAT 6554 A Appellant Respondent Assessee by : Mr. Ashish Thakurdesai, CA Revenue by : Mr. Pravin Salunkhe, Sr. DR Date of Hearing : 02/07/2025 Date of pronouncement : 10/07/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 14.02.2025 passed by the Ld. Addl./Joint Commissioner of Income- tax (Appeals) -1, Kolkata [in short ‘the Ld. CIT(A)’] for assessment year 2012-13, raising following grounds: On facts, in circumstances of the case and in law, Honorable CIT- A ought to have held that adjustment made to total income by Centralised Processing of provisions of section 143(1) of the Income Tax Act, 1961. On facts, in circumstances of the case and in law, Honorable CIT A ought to have allowed the claim of deduction u/s 80(P)(2)(d) of the appellant society in operative banks amounting to Rs. 3,77,131/ circumstances of the case and in law, Honorable CIT have deleted interest of Rs. 1,161/ 234B and Rs.4,296/ The appellant craves leave to add, alter, modify or delete any of the above Grounds 2. Briefly stated, the facts of the case are that the assessee is a co-operative housing society, which filed its return of income for the relevant assessment year on 29 ₹8,900/-. The assessee had earned interest and dividend income aggregating to ₹3,77,131/ claimed deduction under Section 80P(2)(d) of the Income 1961 (hereinafter referred to income. The return of income was processed under Section 143(1) of the Act on 27.02.2013, wherein the deduction claimed under Section 80P(2)(d) was denied. 3. In the appellate proceedings, the ld. CIT(A) took note of t that the original return of income was filed by the assessee on 29.09.2012, which was beyond the due date prescribed under Section 139(1) of the Act, i.e., 31.08.2012, for the relevant assessment year. The learned CIT(A) placed reliance on the deci of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in The Woodland Co Society Ltd ITA No. 2545/MUM/2025 Centralised Processing Centre, Bangalore was outside the scope of provisions of section 143(1) of the Income Tax Act, 1961. On facts, in circumstances of the case and in law, Honorable CIT A ought to have allowed the claim of deduction u/s 80(P)(2)(d) of the appellant society in respect of interest income from co operative banks amounting to Rs. 3,77,131/-On facts, in circumstances of the case and in law, Honorable CIT have deleted interest of Rs. 1,161/- u/s 234A, Rs.12,771/ 234B and Rs.4,296/- u/s 234C, llant craves leave to add, alter, modify or delete any of the above Grounds of Appeal. Briefly stated, the facts of the case are that the assessee is a operative housing society, which filed its return of income for the relevant assessment year on 29.09.2012, declaring total income of . The assessee had earned interest and dividend income 3,77,131/- from various co-operative banks and claimed deduction under Section 80P(2)(d) of the Income 1961 (hereinafter referred to as 'the Act') in respect of the said income. The return of income was processed under Section 143(1) of the Act on 27.02.2013, wherein the deduction claimed under Section 80P(2)(d) was denied. 3. In the appellate proceedings, the ld. CIT(A) took note of t that the original return of income was filed by the assessee on 29.09.2012, which was beyond the due date prescribed under Section 139(1) of the Act, i.e., 31.08.2012, for the relevant assessment year. The learned CIT(A) placed reliance on the deci of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in Woodland Co-operative Housing 2 ITA No. 2545/MUM/2025 Centre, Bangalore was outside the scope of provisions of section 143(1) of the Income Tax Act, 1961. On facts, in circumstances of the case and in law, Honorable CIT- A ought to have allowed the claim of deduction u/s 80(P)(2)(d) of respect of interest income from co- On facts, in circumstances of the case and in law, Honorable CIT-A ought to u/s 234A, Rs.12,771/- u/s llant craves leave to add, alter, modify or delete any of Briefly stated, the facts of the case are that the assessee is a operative housing society, which filed its return of income for the .09.2012, declaring total income of . The assessee had earned interest and dividend income operative banks and claimed deduction under Section 80P(2)(d) of the Income-tax Act, as 'the Act') in respect of the said income. The return of income was processed under Section 143(1) of the Act on 27.02.2013, wherein the deduction claimed under 3. In the appellate proceedings, the ld. CIT(A) took note of the fact that the original return of income was filed by the assessee on 29.09.2012, which was beyond the due date prescribed under Section 139(1) of the Act, i.e., 31.08.2012, for the relevant assessment year. The learned CIT(A) placed reliance on the decision of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in the assessee's own case for the Assessment Year 2021 306/Mum/2024 dated 27.06.2024), wherein it was held that adjustment in respect of disallowance of deduction under Section 80P(2)(d) is permissible while processing the return under Section 143(1)(a)(v) of the Act, in cases where the return has been filed beyond the prescribed due date. is reproduced as under: “ para H 2 ....................................... The Appellant submitted that its own appeal has been adjudicated by the Hon’ble ITAT, Mumbai vide ITA No. 306/Mum/2024 dated 27/06/2024 for the A.Y. 2021 “ 143. 91[(1) Where a return has been made under under sub-section (1) of namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent 92a [ (iia) any such inconsistency in the return, with respect to the information in the return of any preceding previous year, as may be prescribed; 93[(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub (iv) disallowance of expenditure into account in computing the total income in the return; (v) disallowance of deduction claimed under Chapter VI-A under the heading “C. furnished beyond the due date specified unde (vi) addition of income appearing in included in computing the total income in the return: The disallowance of deduction under chapter VI A under section 143 (1) (a) (v) of the act only furnishing of return This only be made account of non the due date of filing of the reason. Therefore, placing reliance on the judicial precedent of the Hon'ble ITAT, Mumbai in Appellant's own case, the disallowance made by the CPC is The Woodland Co Society Ltd ITA No. 2545/MUM/2025 the assessee's own case for the Assessment Year 2021 306/Mum/2024 dated 27.06.2024), wherein it was held that adjustment in respect of disallowance of deduction under Section 80P(2)(d) is permissible while processing the return under Section 143(1)(a)(v) of the Act, in cases where the return has been filed beyond the prescribed due date.The relevant finding of is reproduced as under: ....................................... The Appellant submitted that its own appeal has been adjudicated by the Hon’ble ITAT, Mumbai vide ITA No. 306/Mum/2024 dated 27/06/2024 for the A.Y. 2021-22 is as under: [(1) Where a return has been made under section 139, or in re section (1) of section 142, such return shall be processed in the following manner, the total income or loss shall be computed after making the following adjustments, any arithmetical error in the return; 92[***] an incorrect claim, if such incorrect claim is apparent from any information in the return; any such inconsistency in the return, with respect to the information in the return of any preceding previous year, as may be prescribed;] disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139 disallowance of expenditure 94[or increase in income] indicated in the audit report but not taken into account in computing the total income in the return; disallowance of deduction claimed under 95[section 10AA or under any of the provisions of A under the heading “C.-Deductions in respect of certain incomes”, if] the return is furnished beyond the due date specified under sub-section (1) of section 139 addition of income appearing in Form 26AS or Form 16A or Form 16 included in computing the total income in the return: The disallowance of deduction under chapter VI A under section 143 (1) (a) (v) of the act only furnishing of return This only be made account of non- iling of the reason.” Therefore, placing reliance on the judicial precedent of the Hon'ble ITAT, Mumbai in Appellant's own case, the disallowance made by the CPC is Woodland Co-operative Housing 3 ITA No. 2545/MUM/2025 the assessee's own case for the Assessment Year 2021-22 (ITA No. 306/Mum/2024 dated 27.06.2024), wherein it was held that adjustment in respect of disallowance of deduction under Section 80P(2)(d) is permissible while processing the return under Section 143(1)(a)(v) of the Act, in cases where the return has been filed finding of the ld CIT(A) The Appellant submitted that its own appeal has been adjudicated by the Hon’ble ITAT, Mumbai vide ITA No. 306/Mum/2024 dated , or in response to a notice , such return shall be processed in the following manner, the total income or loss shall be computed after making the following adjustments, from any information in the return; any such inconsistency in the return, with respect to the information in the return of any disallowance of loss claimed, if return of the previous year for which set off of loss is claimed section 139; [or increase in income] indicated in the audit report but not taken or under any of the provisions of Deductions in respect of certain incomes”, if] the return is section 139; or Form 16 which has not been The disallowance of deduction under chapter VI A under section 143 (1) (a) (v) of income within Therefore, placing reliance on the judicial precedent of the Hon'ble ITAT, Mumbai in Appellant's own case, the disallowance made by the CPC is hereby upheld. The CPC has rightly disallowed the claim u/s. 80P(2)(d) in respect of income and dividend income from co amounting to Rs. 3,77,131/ provisions of Section 139(1) of the I. T. Act, 1961. Hence, the Ground No 3 is DISMISSED.” 4. We have heard the rival submissions advance counsel for the parties and perused the relevant material available on record. The two issue that arises for our consideration is, firstly, whether the ld CIT(A) is justified in upholding the adjustment invoking section 143(1)(1)(v) of the Act disallowing the deduction claimed under Section 80P(2)(d) of the Act, on the ground that the return of income was filed beyond the prescribed due dat under Section 139(1) of the Act, Centralized Processing Centre (CPC) was justified in making an adjustment under Section 143(1)(a) of the Act holding it to be an incorrect claim. 4.1 Before us, the learned counsel for the assess reliance upon the decision of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in the assessee’s own case in ITA No. 309/Mum/2024 for the Assessment Year 2021 4.2 The Tribunal (supra), after analyzing the scope of permissible adjustments under Section 143(1)(a), has held that disallowance of deduction under Chapter VI clause (v) of clause (a) to Section 143(1), and such disallowance is legally sustainable only where the return of income has been The Woodland Co Society Ltd ITA No. 2545/MUM/2025 hereby upheld. The CPC has rightly disallowed the claim u/s. 80P(2)(d) in income and dividend income from co- operative banks amounting to Rs. 3,77,131/- as the return was not filed as per the provisions of Section 139(1) of the I. T. Act, 1961. Hence, the Ground We have heard the rival submissions advanced by the learned counsel for the parties and perused the relevant material available on record. The two issue that arises for our consideration is, , whether the ld CIT(A) is justified in upholding the adjustment invoking section 143(1)(1)(v) of the Act disallowing the deduction claimed under Section 80P(2)(d) of the Act, on the ground that the return of income was filed beyond the prescribed due dat under Section 139(1) of the Act, secondly, whether the ld Centralized Processing Centre (CPC) was justified in making an adjustment under Section 143(1)(a) of the Act holding it to be an Before us, the learned counsel for the assess reliance upon the decision of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in the assessee’s own case in ITA No. 309/Mum/2024 for the Assessment Year 2021–22. The Tribunal (supra), after analyzing the scope of permissible justments under Section 143(1)(a), has held that disallowance of deduction under Chapter VI-A can only be made in terms of sub clause (v) of clause (a) to Section 143(1), and such disallowance is legally sustainable only where the return of income has been Woodland Co-operative Housing 4 ITA No. 2545/MUM/2025 hereby upheld. The CPC has rightly disallowed the claim u/s. 80P(2)(d) in operative banks as the return was not filed as per the provisions of Section 139(1) of the I. T. Act, 1961. Hence, the Ground d by the learned counsel for the parties and perused the relevant material available on record. The two issue that arises for our consideration is, , whether the ld CIT(A) is justified in upholding the adjustment invoking section 143(1)(1)(v) of the Act disallowing the deduction claimed under Section 80P(2)(d) of the Act, on the ground that the return of income was filed beyond the prescribed due date , whether the ld Centralized Processing Centre (CPC) was justified in making an adjustment under Section 143(1)(a) of the Act holding it to be an Before us, the learned counsel for the assessee has placed reliance upon the decision of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in the assessee’s own case in ITA No. The Tribunal (supra), after analyzing the scope of permissible justments under Section 143(1)(a), has held that disallowance of A can only be made in terms of sub- clause (v) of clause (a) to Section 143(1), and such disallowance is legally sustainable only where the return of income has been filed beyond the due date specified under Section 139(1). further held that where the return is filed within the prescribed time, any disallowance of deduction under Section 80P(2)(d) would not fall within the scope of an “incorrect claim” as sub-clauses (i) to (iii) of Section 143(1)(a). It was specifically observed that deduction under Section 80P(2)(d) is not subject to any statutory limit, percentage, or monetary threshold so as to render it an incorrect claim apparent from also noted that merely because a part of the interest income was classified by the assessee under the head “Income from Other Sources” and another part under “Profits and Gains of Business or Profession” does not alter the essenti vitiate the claim of deduction, provided the conditions under Section 80P(2)(d) are otherwise satisfied. It is further relevant to note that the Tribunal held, on merits, that co nothing but co-operative soci banking, and therefore, income earned by the assessee society by way of interest from such banks is eligible for deduction under Section 80P(2)(d). The assessee being a co and not a co-operative ba not attracted. The relevant finding of the Tribunal reproduced as under: “4. We have heard the rival contention and perused the orders of the lower authorities. The issue involved in this appeal is whether The Woodland Co Society Ltd ITA No. 2545/MUM/2025 beyond the due date specified under Section 139(1). further held that where the return is filed within the prescribed time, any disallowance of deduction under Section 80P(2)(d) would not fall within the scope of an “incorrect claim” as envisaged under clauses (i) to (iii) of Section 143(1)(a). It was specifically observed that deduction under Section 80P(2)(d) is not subject to any statutory limit, percentage, or monetary threshold so as to render it an incorrect claim apparent from the return. The Tribunal also noted that merely because a part of the interest income was classified by the assessee under the head “Income from Other Sources” and another part under “Profits and Gains of Business or Profession” does not alter the essential nature of the income nor vitiate the claim of deduction, provided the conditions under Section 80P(2)(d) are otherwise satisfied. It is further relevant to note that the Tribunal held, on merits, that co-operative banks are operative societies engaged in the business of banking, and therefore, income earned by the assessee society by way of interest from such banks is eligible for deduction under Section 80P(2)(d). The assessee being a co-operative housing society operative bank, the provisions of Section 80P(4) are The relevant finding of the Tribunal reproduced as under: 4. We have heard the rival contention and perused the orders of the lower authorities. The issue involved in this appeal is whether the assessee is entitled to deduction under Woodland Co-operative Housing 5 ITA No. 2545/MUM/2025 beyond the due date specified under Section 139(1). The Tribunal further held that where the return is filed within the prescribed time, any disallowance of deduction under Section 80P(2)(d) would envisaged under clauses (i) to (iii) of Section 143(1)(a). It was specifically observed that deduction under Section 80P(2)(d) is not subject to any statutory limit, percentage, or monetary threshold so as to the return. The Tribunal also noted that merely because a part of the interest income was classified by the assessee under the head “Income from Other Sources” and another part under “Profits and Gains of Business or al nature of the income nor vitiate the claim of deduction, provided the conditions under Section 80P(2)(d) are otherwise satisfied. It is further relevant to operative banks are eties engaged in the business of banking, and therefore, income earned by the assessee society by way of interest from such banks is eligible for deduction under operative housing society nk, the provisions of Section 80P(4) are The relevant finding of the Tribunal(supra) is 4. We have heard the rival contention and perused the orders of the lower authorities. The issue involved in this the assessee is entitled to deduction under section 80 P (2) (D) of the act on account of interest income earned by the assessee from other cooperative banks even if it is disclosed as income from other sources and whether the adjustment made by the centr or not. 5. As per provisions of section 143 (1) (a) permits following adjustment to the total income of the assessee: 143. 67[(1) Where a return has been made under section 139, or in response to a notice under sub 142, such return shall be processed in the following manner, namely:— (a) the total income or loss shall be computed after making the following adjustments, namely: (i) any arithmetical error in the return; 68[***] (ii) an incorrect claim, any information in the return; [(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub section 139; (iv) disallowance of expenditure 70[or increase in income] indicated in the audit report but not taken into computing the total income in the return; (v) disallowance of deduction claimed under 71[section or under any of the provisions heading \"C.— return is furnished beyond section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form or Form 16 which total income in the return: 6. The disallowance of deduction under chapter VI A can only be made under section 143 (1) (a) (v) of the act only on account of non date of filing of the The Woodland Co Society Ltd ITA No. 2545/MUM/2025 section 80 P (2) (D) of the act on account of interest income earned by the assessee from other cooperative banks even if it is disclosed as income from other sources and whether the adjustment made by the central processing Centre is correct 5. As per provisions of section 143 (1) (a) permits following to the total income of the assessee:- 143. 67[(1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section such return shall be processed in the following manner, (a) the total income or loss shall be computed after making the following adjustments, namely:— (i) any arithmetical error in the return; 68[***] (ii) an incorrect claim, if such incorrect claim is apparent any information in the return; [(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) (iv) disallowance of expenditure 70[or increase in income] indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under 71[section or under any of the provisions of Chapter VI-A under the —Deductions in respect of certain incomes\", if] the return is furnished beyond the due date specified under sub of section 139; or (vi) addition of income appearing in Form 26AS or Form or Form 16 which has not been included in computing the total income in the return: 6. The disallowance of deduction under chapter VI A can only under section 143 (1) (a) (v) of the act only on account of non- furnishing of return of income within the due filing of the return. This is not the reason. Woodland Co-operative Housing 6 ITA No. 2545/MUM/2025 section 80 P (2) (D) of the act on account of interest income earned by the assessee from other cooperative banks even if it is disclosed as income from other sources and whether the al processing Centre is correct 5. As per provisions of section 143 (1) (a) permits following 143. 67[(1) Where a return has been made under section 139, (1) of section such return shall be processed in the following manner, (a) the total income or loss shall be computed after making if such incorrect claim is apparent from [(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished section (1) of (iv) disallowance of expenditure 70[or increase in income] account in (v) disallowance of deduction claimed under 71[section 10AA under the certain incomes\", if] the the due date specified under sub- (vi) addition of income appearing in Form 26AS or Form 16A computing the 6. The disallowance of deduction under chapter VI A can only under section 143 (1) (a) (v) of the act only on furnishing of return of income within the due 7. Claim of the assessee cannot be said to be an incorrect claim in view (a) \"an incorrect claim apparent from any information in the return\" shall mean a claim, on th return,— (i) of an item, which is inconsistent with another entry of same or some other item in such return; (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has been so furnished; or (iii) in respect of a deduction, where such deduction specified statutory limit which may have been monetary amount or percentage or ratio 8. It is not the case that deduction under section 80 P (2) is a deduction provided by any monitoring limit or percentage ratio or fraction. Thus, claim of deduction under section 80 P (2) (d) is also not classified as incorrect claim. Merely because part of the interest income in profit and loss shown by the assessee under the sources does not change the character of consequent deduction of such income, if available. the claim of the an incorrect claim. 9. Thus, the adjustment of disallowance of deduction under that section is not permissible adjustment provided under section 143 (1) of the under section 10. On the merits of the case, provisions of section 2 (19) define a co-operative society as under: 19) \"co-operative society\"97 means a co registered under the Co 1912), or under any other law for the time being in force in any State for the registration of co 11. Thus, for the definition of the cooperative society whether covers the cooperative banks are not one has to look at the respective cooperative societies act is applicable. The Woodland Co Society Ltd ITA No. 2545/MUM/2025 7. Claim of the assessee cannot be said to be an incorrect of the explanation (a) which is as under:- (a) \"an incorrect claim apparent from any information in the return\" shall mean a claim, on the basis of an entry, in (i) of an item, which is inconsistent with another entry of same or some other item in such return; (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has been so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; 8. It is not the case that deduction under section 80 P (2) deduction provided by any monitoring limit or percentage fraction. Thus, claim of deduction under section 80 P not classified as incorrect claim. Merely because part of the interest is disclosed by the assessee is interes income in profit and loss account and part of the income shown by the assessee under the head income from other sources does not change the character of the income and consequent deduction of such income, if available. Therefore, the claim of the assessee in the return of income is also an incorrect claim. 9. Thus, the adjustment of disallowance of deduction under is not permissible adjustment provided under section 143 (1) of the act. Therefore the intimation passed under section 143 (1) is not sustainable. 10. On the merits of the case, provisions of section 2 (19) operative society as under:- operative society\"97 means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of under any other law for the time being in force in any State for the registration of co-operative societies ; 11. Thus, for the definition of the cooperative society whether cooperative banks are not one has to look at the cooperative societies act is applicable. Woodland Co-operative Housing 7 ITA No. 2545/MUM/2025 7. Claim of the assessee cannot be said to be an incorrect - (a) \"an incorrect claim apparent from any information in the e basis of an entry, in the (i) of an item, which is inconsistent with another entry of the (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has not exceeds expressed as 8. It is not the case that deduction under section 80 P (2) (d) deduction provided by any monitoring limit or percentage fraction. Thus, claim of deduction under section 80 P not classified as incorrect claim. Merely because is disclosed by the assessee is interest account and part of the income head income from other the income and Therefore, assessee in the return of income is also not 9. Thus, the adjustment of disallowance of deduction under is not permissible adjustment provided under act. Therefore the intimation passed 10. On the merits of the case, provisions of section 2 (19) operative society operative Societies Act, 1912 (2 of under any other law for the time being in force in 11. Thus, for the definition of the cooperative society whether cooperative banks are not one has to look at the 12. THE MAHARASHTRA CO 1960, Defines Act as under : ―Co-operative bank doing the business of banking sections (1) of and includes any as an Agricultural and Chapter X. 13. Thus it is apparent that coopera operative society. Only difference is that those cooperative societies are doing banking companies act 1949. these cooperative societies cooperative their status as a co 14. According to the provisions of section 80 P (2) (d) of the income tax act (d) in respect of any income by way of interest or dividends derived by the co any other co-operative society, the whole of such income; 15. Thus, the assessee’s investment of earning interest income from cooperative societies whole under this section. 16. It is not in dispute bank and therefore provisions of section 80 P (4) of the act does not apply to 17. Thus the assessee is eligible for deduction under section 80 P (2) (d) of the act on its income received from all the above cooperative banks. of Rs. 410340/ learned CIT – 4.3 The learned counsel has also drawn our attention to the provisions of Section 80AC of the Act, which were amended with effect from 01.04.2018 to provide that deductions under Ch VI-A under the heading \"C. The Woodland Co Society Ltd ITA No. 2545/MUM/2025 12. THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960, Defines cooperative banks as per section 2 (10) of that Act as under :‖- operative bank‖ means a Co-operative society which is business of banking as defined in clause (b) of sub sections (1) of section 5 of the Banking Companies Act, 1949 and includes any society which is functioning or is to function as an Agricultural and Rural Development Bank under 13. Thus it is apparent that cooperative banks are also a co society. Only difference is that those cooperative societies are doing the business of banking as per the banking companies act 1949. Therefore, merely because these cooperative societies cooperative bank they do not lose their status as a co-operative society. 14. According to the provisions of section 80 P (2) (d) of the act (d) in respect of any income by way of interest or dividends by the co-operative society from its investments with operative society, the whole of such income; 15. Thus, the assessee’s investment of earning interest income from such cooperative banks which are also cooperative societies whole of such income is deductible under this section. 16. It is not in dispute that assessee is not a cooperative therefore provisions of section 80 P (4) of the act does not apply to it. 17. Thus the assessee is eligible for deduction under section of the act on its income received from all the above banks. of Rs. 410340/- . Thus order of the A is reversed.” The learned counsel has also drawn our attention to the provisions of Section 80AC of the Act, which were amended with effect from 01.04.2018 to provide that deductions under Ch A under the heading \"C.—Deductions in respect of certain Woodland Co-operative Housing 8 ITA No. 2545/MUM/2025 OPERATIVE SOCIETIES ACT, cooperative banks as per section 2 (10) of that operative society which is as defined in clause (b) of sub- section 5 of the Banking Companies Act, 1949 society which is functioning or is to function Rural Development Bank under tive banks are also a co- society. Only difference is that those cooperative the business of banking as per the Therefore, merely because bank they do not lose 14. According to the provisions of section 80 P (2) (d) of the (d) in respect of any income by way of interest or dividends operative society from its investments with operative society, the whole of such income; 15. Thus, the assessee’s investment of earning interest such cooperative banks which are also of such income is deductible that assessee is not a cooperative therefore provisions of section 80 P (4) of the act 17. Thus the assessee is eligible for deduction under section of the act on its income received from all the above . Thus order of the The learned counsel has also drawn our attention to the provisions of Section 80AC of the Act, which were amended with effect from 01.04.2018 to provide that deductions under Chapter Deductions in respect of certain incomes\" shall not be allowed unless the return is filed within the time prescribed under Section 139(1). Prior to this amendment, Section 80AC applied only to deductions under Sections 80 IAB, 80-IB, and 80-IC. Accordingly, for the assessment year under consideration, i.e., A.Y. 2012 amended Section 80AC has no application. section 80AC is reproduced as under: “[Deduction not to be allowed unless return furnished. 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80 section 80-ID or section 80 (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading “C. no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub 139.]” 4.4 We have also examined the language of Section 143(1)(a)(v) as it stood prior to 01.04.2018. It is clear that the power to disallow deductions for delayed filing of return under the general provisions of Chapter VI-A was introduced only from that date. Hence, the adjustment made by the CPC for A.Y. 2012 143(1)(a)(v) lacks statutory backing as the return was filed before the date of amendment and the extended scope of disallowance was not applicable for the said year. The Woodland Co Society Ltd ITA No. 2545/MUM/2025 incomes\" shall not be allowed unless the return is filed within the time prescribed under Section 139(1). Prior to this amendment, Section 80AC applied only to deductions under Sections 80 IC. Accordingly, for the assessment year under consideration, i.e., A.Y. 2012–13, the extended restriction under amended Section 80AC has no application. For ready reference said section 80AC is reproduced as under: to be allowed unless return furnished.57 Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after- the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is section 80-IA or section 80-IAB or section 80- section 80-IE; the 1st day of April, 2018, any deduction is admissible under any provision of this the heading “C.-Deductions in respect of certain incomes”, no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub We have also examined the language of Section 143(1)(a)(v) as it stood prior to 01.04.2018. It is clear that the power to disallow deductions for delayed filing of return under the general provisions A was introduced only from that date. Hence, the adjustment made by the CPC for A.Y. 2012–13 by invoking Section 143(1)(a)(v) lacks statutory backing as the return was filed before the date of amendment and the extended scope of disallowance was ot applicable for the said year. Woodland Co-operative Housing 9 ITA No. 2545/MUM/2025 incomes\" shall not be allowed unless the return is filed within the time prescribed under Section 139(1). Prior to this amendment, Section 80AC applied only to deductions under Sections 80-IA, 80- IC. Accordingly, for the assessment year under 13, the extended restriction under For ready reference said Where in computing the total income of an assessee of any previous year relevant the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is -IB or section 80-IC or the 1st day of April, 2018, any deduction is admissible under any provision of this Deductions in respect of certain incomes”, no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section We have also examined the language of Section 143(1)(a)(v) as it stood prior to 01.04.2018. It is clear that the power to disallow deductions for delayed filing of return under the general provisions A was introduced only from that date. Hence, the 13 by invoking Section 143(1)(a)(v) lacks statutory backing as the return was filed before the date of amendment and the extended scope of disallowance was 4.5 In light of the above discussion, we are of the considered view that, firstly, the disallowance upheld by the learned CI sustainable in law under the law applicable for the relevant assessment year and , the Tribunal in assessee’s own case t CPC under Section 143(1)(a) does not conform to the permissible scope of adjustments as envisaged under that provision,. 4.6 Accordingly, the impugned o and the adjustment made by the CPC under Section 143(1)(a) of the Act are hereby set aside. The grounds raised by the assessee in the appeal are allowed. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on Sd/- (RAJ KUMAR CHAUHAN JUDICIAL MEMBER Mumbai; Dated: 10/07/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// The Woodland Co Society Ltd ITA No. 2545/MUM/2025 In light of the above discussion, we are of the considered view the disallowance upheld by the learned CI sustainable in law under the law applicable for the relevant assessment year and ,secondly , following the binding precedent of the Tribunal in assessee’s own case the adjustment made by the CPC under Section 143(1)(a) does not conform to the permissible scope of adjustments as envisaged under that provision,. Accordingly, the impugned order passed by the learned CIT(A) and the adjustment made by the CPC under Section 143(1)(a) of the Act are hereby set aside. The grounds raised by the assessee in the In the result, the appeal of the assessee is allowed. nced in the open Court on 10/07/2025. (RAJ KUMAR CHAUHAN) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Woodland Co-operative Housing 10 ITA No. 2545/MUM/2025 In light of the above discussion, we are of the considered view the disallowance upheld by the learned CIT(A) is not sustainable in law under the law applicable for the relevant , following the binding precedent of he adjustment made by the CPC under Section 143(1)(a) does not conform to the permissible scope of adjustments as envisaged under that provision,. rder passed by the learned CIT(A) and the adjustment made by the CPC under Section 143(1)(a) of the Act are hereby set aside. The grounds raised by the assessee in the In the result, the appeal of the assessee is allowed. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "