Case Law Details
Chetak Co-Operative Housing Society Ltd. Vs ITO (ITAT Mumbai)
Conclusion: Co-operative society received/earned interest on deposits with the co-operative bank was eligible for claim of deduction under section 80(2)(d).
Held: Assessee was a cooperative housing society registered under Maharashtra Society Act 1960. It had filed the return of income for the A.Y 2013-14 disclosing a total income of Rs. Nil after claiming deduction u/s 80P(2)(d) of Rs.12,35,591/- and the return of income was processed u/s 143(1). Subsequently the case was selected for scrutiny under CASS and notice u/s 143(2) and U/sec 142(1) along with the questionnaire were issued. In compliance to notice, assessee appeared from time to time and furnished the details and the case was discussed. Whereas AO found that assessee had disclosed gross income including interest income on fixed deposits from three cooperative banks aggregating to Rs. 12,35,591/- and had claimed deduction U/s 80P(2)(d). AO had called for the explanations on the claim of deduction u/s 80(P)(2)(d), whereas assessee had filed the details supporting the claim that assessee was entitled for deduction u/s 80(P)(2)(d), whereas AO had dealt on the facts and provisions and had not allowed the deduction u/s 80(P)(2)(d) as the cooperative bank was an urban cooperative commercial bank did not fall under the purview of the cooperative society referred at Sec. 80(P)(2)(d) and therefore interest income from cooperative banks had to be taxed under income from other sources and assessed the total income of Rs. 12,35,590/- and passed the order u/sec143(3). It was held that following the decision in case of Commercial Premises Co-op Society Ltd vs. CPC Karnataka in ITA No. 2873 & 2874/Mum/2022 dated 17-01-2023, interest on deposits of a cooperative society with the cooperative bank was eligible for a claim of deduction under section 80(2)(d). Therefore, the bench allowed the appeal of the assessee.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The Income Tax Appellate Tribunal (ITAT), Mumbai bench held that interest income received from cooperative banks is eligible for a claim of deduction under section 80(2)(d) of the Income Tax Act, 1961. The assessee, Chetak Co-Operative Housing Society Ltd, is a cooperative housing society registered under the Maharashtra Society Act, 1960. The assessee filed the return of income for the A.Y 2013-14 on 29.10.2013, disclosing a total income of Rs. Nil after claiming a deduction under section 80P(2)(d) of the Income Tax Act of Rs. 12,35,591/-. The return of income was processed under section 143(1) of the Income Tax Act.
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