Middle Income Group Co. Op. Hsg. Soc. Ltd Vs ITO (ITAT Mumbai)
ITAT Mumbai held that deduction claimed u/s. 80P(2)(d) of the Income Tax Act cannot be denied by invoking another sub-section of 80P. Accordingly, disallowance of deduction claimed u/s 80P deleted.
Facts- Assessee is co-operative housing society, filed its return of income on 22.12.2017. Case of the assessee was selected for complete scrutiny and a notice u/s. 143(2) was issued and duly served on the assessee. During the assessment proceedings AO came to know about the claim of the assessee u/s. 80P and an AIR information about payment of Rs. 3,91,77,500/- by some developer MIG (Bandra) Realtors & Builders Pvt. Ltd towards stamp duty charges in terms of development agreement. Show cause was issued to treat the same as income of society and also for disallowance of claim u/s. 80P.
Post submission from the assessee, AO made addition and assessed the case. CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- Co-ordinate bench in MIG Co-op. Society Group-II had held that the assessee had made a claim deduction of Rs.47.08 lakhs and Rs.50,000/- u/s. 80P(2)(d) and 80P(2)(c)(ii) respectively, that the AO had invoked the provisions of Sec.80P (2) (f) and denied the society the benefits claimed by it. In our opinion, the sub sections of 80P deal with different claims and operate in different fields. The provisions of one sub section cannot be imported to another sub section.
Held that respectfully following the above judgement AO is directed to reverse the disallowance made against deduction claimed by the assessee u/s. 80P.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. These appeals by assessee are directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 30.12.2022 and 27.12.2022 u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’) for A.Y. 2016-17 and 2017-18 respectively. The assessee has raised the following grounds in ITA No. 541/Mum/2023 for AY 2016-17:-
