Samata Co-operative Housing Society Ltd. Vs DCIT (ITAT Mumbai)
Facts of the Case
The assessee is a cooperative housing society based in Mumbai, filed its return of income for Assessment Year 2021-22 on January 25, 2022, declaring a total income of ₹ 1,23,81,720. The society had earned interest income of ₹56,08,072 from fixed deposits with various cooperative banks and ₹2,99,102 from savings bank accounts (including ₹38,929 from Bank of Baroda). The society claimed a deduction of ₹59,07,174 under Section 80P(2)(d) of the Income Tax Act on this interest income. However, during processing under Section 143(1), the Central Processing Centre, Bangalore, denied this deduction and determined the total income at ₹1,82,88,900. The society’s appeal was dismissed by the first appellate authority, prompting the society to approach the Income Tax Appellate Tribunal.
Arguments Made
The assessee society contended that interest income received from cooperative banks should be eligible for deduction under Section 80P(2)(d). The society relied on judicial precedents in the case of Pathare Prabhu Co-operative Housing Society Ltd. vs Income-tax Officer [2023] 153 taxmann.com 714 (Mumbai Trib.) and Palm Court M Premises Co-operative Society Ltd. v. Principal Commissioner of Income-tax [2022] 145 taxmann.com 415 (Mumbai – Trib.) to support its position.
