VASANT SAGAR KRISHNA CO -OP HSG SOC. LTD,MUMBAI V. ITO, WARD 42(1)(5), MUMBAI

ITA 4404/MUM/2024

AI Insights

The case revolves around the appeal by M/s. Vasant Sagar Krishna Co-op Hsg Soc Ltd against the order of the Commissioner of Income Tax (Appeals), which affirmed the disallowance of a deduction claimed under section 80P(2)(d) of the Income Tax Act, 1961. The deduction pertained to interest income earned from various Co-operative banks. The Tribunal referenced a similar case, Ashok Tower 'D' Co. Op. Housing Society Ltd. Vs. Income Tax Officer, and previous rulings in the assessee's own case for the Assessment Year 2021-22, which supported the assessee's position. Consequently, the Tribunal allowed the deduction, emphasizing the entitlement of cooperative societies to such deductions under the specified section.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470619 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 15-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 28-08-2024
• Other Referred Cases: Ashok Tower 'D' Co. Op. Housing Society Ltd. Vs. Income Tax Officer (ITA No. 3501/M/2023)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASIF KAR MALI
• Assessee Lawyers: SHASHANK MEHTA
• Section: 250; 143(1); 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “J(SMC)”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER ITA No.4404/M/2024 Assessment Year: 2020-21 M/s. Vasant Sagar Krishna Co- op Hsg Soc Ltd Ground Floor, Vasant Sagar Complex, Thakur Village, Kandivali (East), Mumbai - 400101 PAN: AAAAV2362B Vs. Centralized Processing Center, Income Tax Department, ITO Ward 42 (1)(5) Kautilya Bhawan, BKC, Mumbai - 400051 (Appellant) (Respondent) Present for: Assessee by : Shri Shashank Mehta Revenue by : Shri Asif Karmali, Sr. D.R Date of Hearing : 15.10.2024 Date of Pronouncement: 23.10.2024 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 29.06.2024, impugned herein, passed by the Ld. ADDL/Joint Commissioner of Income Tax (Appeal) – 1, Visakhapatnam, under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the Assessment Year 2020-21. ITA No.4404/M/2024 M/s. Vasant Sagar Krishna Co-op Hsg Soc Ltd 2 2. In the instant case, the Assessee has earned following interst income from Co-operative banks: Sr. no. Bank name Interest received in Rs. 01 Saraswat Co-op Bank 19,22,145/- 02 SVC Co-op Bank 32,983/- 03 Bharat Co-op Bank Mumbai Ltd. 49,427/- 04 Mumbai District Co-op Bank Ltd. 81,112/- Total 20,79,895/- 3. The Assessee by filing its return of income for the assessment year under consideration on dated 30/01/2021 claimed a deduction of Rs. 20,79,895/- on account interest income earned from Co- Operative banks u/s. 80P(2)(d) of the act. The return filed by the Assessee was processed vide intimation/ order dated 23/12/2021 by the CPC/Assessing officer. The CPC vide intimation dated 23/12/2021 u/s. 143(1) of the act disallowed the aforesaid deduction claimed by the Assessee. 4. The Assessee being aggrieved challenged the aforesaid addition before the Ld. Commissioner, who though affirmed decision of assessing officer in making the disallowance on account of deduction claimed by the assessee u/s. 80P(2)(d) of the act, however, directed the AO to grant deduction to the Assessee, as per provisions of section 57 of the act, to extent applicable after verification. 5. The Assessee being aggrieved within appeal before us. 6. The question emerge “whether the Assessee is entitled to claim deduction of Rs. 20,79,895/- on account interest income earned from Co-Operative banks u/s. 80P(2)(d) of the act or not”. We observe various coordinate benches of the tribunal in various ITA No.4404/M/2024 M/s. Vasant Sagar Krishna Co-op Hsg Soc Ltd 3 cases including in the case of Mumbai bench “SMC” in the case of Ashok Tower “D” Co. Op. Housing Society Ltd. Vs. Income Tax Officer (ITA No. 3501/M/2023) decided on 05/04/2024 has decided the identical issue as involved in this case by observing and holding as under: “We are of the considered view, that though the co- operative bank pursuant to the insertion of Sub-section (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but however, as a co-operative bank continues to be a co-operative society registered under the Co- operative Societies Act, 1912 (2 of 1912), or under any other law for the time being enforced in any state for the registration of cooperative societies, therefore, the interest income derived by a cooperative society from its investments held with a co- operative bank, would be entitled for claim of deduction under Sec.80P(2)(d) of the Act” 7. We also observe as contained by the assessee that the then ADDL/JCIT (appeal) Agra in the Assessee’s own case for the Assessment Year 2021-22 decided on 29/03/2023 has also allowed the identical deduction claimed by the Assessee, by deleting the identical addition made by the AO. 8. Thus respectively, following the aforesaid judgment of the coordinate bench of the tribunal and considering the facts the Ld. ADDL./JCIT (appeal) Agra in the Assessee’s own case has allowed the identical deduction, we are inclined to allow deduction claimed by the Assessee, by deleting the addition made by the AO and affirmed by the ADDL/ JCIT commissioner. Consequently, the addition is deleted and claim of deduction u/s 80P(2)(d) of the Act, as claimed by the Assessee is allowed. ITA No.4404/M/2024 M/s. Vasant Sagar Krishna Co-op Hsg Soc Ltd 4 9. In the result the appeal filed by the assessee stands allowed. Order pronounced in the open court on 23.10.2024. Sd/- Sd/- (GAGAN GOYAL) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Poonam Mirashi, Stenographer Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "