Laxmi Cooperative Housing Society Limited Vs ITO (ITAT Pune)
Pune ITAT: Housing Society Wins U/s 80P Deduction on Interest from Cooperative Banks
The Pune ITAT allowed a cooperative housing society’s claim for deduction under section 80P(2)(d) on interest income of ₹14.98 lakh earned from deposits and investments made with cooperative banks. The deduction had been disallowed by CPC while processing the return under section 143(1), and the disallowance was subsequently upheld by the CIT(A).
The Tribunal observed that a cooperative bank is also a cooperative society within the meaning of section 2(19) of the Income-tax Act. Therefore, interest or dividend earned by one cooperative society from investments made with another cooperative society, including a cooperative bank, qualifies for deduction under section 80P(2)(d). The ITAT noted that this issue is well settled by several judicial precedents, including decisions of the Madras High Court.
The Tribunal also took note of the assessee’s contention that, prior to the amendments made by the Finance Act, 2021, CPC did not have the authority under section 143(1) to make such an adjustment while processing the return. Holding that the assessee was fully entitled to the deduction, the ITAT reversed the order of the CIT(A) and directed allowance of the entire claim of ₹14.98 lakh under section 80P(2)(d).
FULL TEXT OF THE ORDER OF ITAT PUNE
The captioned appeal at the instance of assessee pertaining to A.Y. 2020-21 is directed against the order dated 15.12.2025 framed by Addl/JCIT(A)-1, Delhi passed u/s.250 of the Income Tax Act, 1961 (in short ‘the Act’) arising out of Intimation Order dated 25.11.2021 passed u/s.143(1) of the Act.
