Lake Florence ABCDEF & G CHS Ltd. Vs DCIT (ITAT Mumbai)
Interest from Co-operative Bank Held Eligible for Deduction – ITAT Allows 80P(2)(d) & 80P(2)(c) Claim of Housing Society
Assessee, a co-operative housing society, claimed deduction u/s 80P(2)(d) & 80P(2)(c) on interest income earned from deposits with co-operative banks. AO disallowed the claim, holding that such interest was not eligible for deduction, & CIT(A) upheld the order.
Before Tribunal, Assessee relied on several decisions of Gujarat, Karnataka & Madras High Courts & coordinate benches of Mumbai ITAT, which consistently held that interest earned by a co-operative society from investments with a co-operative bank is eligible for deduction u/s 80P(2)(d).
Tribunal noted that the issue was squarely covered by these precedents & that judicial consistency demanded similar treatment. It therefore held that the AO erred in denying the deduction, & directed the AO to allow the Assessee’s claim u/s 80P(2)(d) & 80P(2)(c).
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These two appeals have been filed by the assessee challenging the different impugned orders passed under section 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment year 2018-19 & 2020-21.
