DCIT Vs Aditya Harshvadan Mangaldas (ITAT Ahmedabad)
Co-op Housing Society Wins 80P Battle: Interest From Co-op Bank Qualifies for Deduction- 80P Lives On: Co-op Bank Interest Not “Other Sources” for Housing Society- Species Theory Applied: Co-op Bank = Co-op Society, 80P(2)(d) AllowedBangalore ITAT ‘B’ Bench in M/s. Sree Maruthi Cooperative Housing Society Vs ITO, Ward-7(2)(3), Bengaluru (ITA No. 1895/Bang/2024, AY 2016-17, order dated 09-12-2025) allowed assessee’s appeal & held that interest earned by a co-operative housing society on deposits kept with a co-operative bank is eligible for deduction u/s 80P(2)(d). Assessee had filed NIL return; AO treated interest of ₹31,41,854 from Textile Co-operative Bank Ltd. as income from other sources & denied 80P deduction invoking section 80P(4). CIT(A) granted partial relief but confirmed taxability of net interest. Tribunal rejected Revenue’s stand, holding that co-operative banks are a species of co-operative societies & interest received from investments with such co-operative societies squarely qualifies for deduction u/s 80P(2)(d). Tribunal relied on Supreme Court rulings in Mavilayi Service Co-operative Bank Ltd. (431 ITR 1) & Kerala State Co-operative Agricultural & Rural Development Bank Ltd. (458 ITR 384), set aside lower authorities’ orders & allowed full deduction, resulting in deletion of the addition.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
