Sai Ankur Cooperative Housing Society Ltd. Vs ITO (ITAT Mumbai)
ITAT Mumbai allowed the deduction under Section 80P(2)(d) of the Income Tax Act, 1961, for interest income earned by Sai Ankur Cooperative Housing Society Ltd. from fixed deposits with Apna Sahakari Bank Ltd., a cooperative bank. The case arose after the Centralized Processing Center (CPC) denied the deduction through an intimation under Section 143(1), which was later upheld by the Commissioner of Income Tax (Appeals). The cooperative society challenged this decision, citing multiple tribunal and court rulings favoring deductions for interest income from cooperative banks.
The tribunal examined past rulings, including Pathare Prabhu Co-operative Housing Society Ltd. vs. ITO and Kaliandas Udyog Bhavan Premises Coop Society Ltd. vs. ITO, and held that cooperative banks qualify as cooperative societies under Section 2(19) of the Act. It ruled that cooperative societies are entitled to deductions on interest income earned from cooperative banks, distinguishing them from commercial banks, which are excluded by Section 80P(4). The tribunal set aside the CIT(A) order and directed the assessing officer to allow the deduction, reinforcing the precedent favoring cooperative societies in similar cases.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been preferred by the Assessee against the order dated 28.09.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2021-22.
