Chitrapur Co-Operative Housing Society Limited Vs ITO (ITAT Mumbai)
Interest from Co-operative Bank FDs Qualifies for Section 80P(2)(d) Deduction: Mumbai ITAT
In The Chitrapur Co-operative Housing Society Ltd. v. ITO, the issue was whether interest earned by a co-operative housing society from fixed deposits maintained with co-operative banks was eligible for deduction under section 80P(2)(d).
The first appellate authority had denied the deduction. Before the Tribunal, the assessee relied on the Mumbai ITAT’s orders in its own cases for AYs 2021-22 and 2023-24, where the identical issue had already been decided in its favour.
Following those orders and the decision in Premium Tower Co-operative Housing Society Ltd. v. CIT, the Tribunal held that interest received from investments with a co-operative bank qualifies for deduction under section 80P(2)(d).
The Tribunal accordingly directed the Assessing Officer to allow the entire deduction claimed on interest from fixed deposits with co-operative banks and allowed the society’s appeal.
List of Cases Discussed / Relied Upon
- Chitrapur Co-Operative Housing Society Limited Vs ITO (ITAT Mumbai)
- Premium Tower Co-operative Housing Society Ltd. v. CIT
- Totagars Cooperative Sale Society
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal is filed by the assessee against the order of the Additional/Joint Commissioner of Income Tax (Appeals)-3, Bangalore, dated 29.10.2025 for the assessment year 2022-23 in denying deduction claimed u/s 80P(2)(d) on the interest income earned on FDs with cooperative banks.
