Ambika Co-operative Housing Society Limited Vs ITO (ITAT Mumbai)
In Ambika Co-operative Housing Society Ltd. vs ITO (A.Y. 2020-21), deduction u/s 80P(2)(d) on interest from fixed deposits was disallowed and the appeal before CIT(A) was rejected due to delay of 1080 days. The assessee explained that delay occurred due to change in management and pursuit of rectification proceedings u/s 154.
The ITAT noted that the issue of deduction u/s 80P(2)(d) is largely settled in light of the Supreme Court decision in Kerala State Cooperative Agricultural & Rural Development Bank. In the interest of justice, the Tribunal restored the matter to the AO to examine eligibility of deduction based on whether interest was earned from eligible co-operative societies/banks and to allow deduction or assess under “Income from Other Sources” after granting appropriate relief u/s 57 where required.
Accordingly, the matter was remanded for fresh verification with direction to provide proper opportunity to the assessee, and the appeal was partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Present appeal filed by assessee arises out of order dated 02/07/2025 passed by NFAC, Delhi [hereinafter “the Ld.CIT(A)”], for Assessment Year 2020-21, on the following grounds of appeal:-
“1. The learned ADDL/JIT (A)-1 GUWAHATI, hereinafter referred to as, The CIT(A)’ erred in dismissing the appeal by not condoning the delay in filing the appeal.
2. The learned ADDL/JIT (A)-1 GUWAHATI, hereinafter referred to as, CIT(A)’ erred in not allowing deduction of Rs.3,82,160.00 u/s.80P(2)(d) of the Income Tax Act, 1961 on account of interest received from Co-operative Bank on Fixed deposits.
3. The CIT(A) erred in levying the interest u/s.234B of Rs.22,059.00 and u/s.234C of Rs.5,862.00.
The appellant carves leave to add, amend, alter or delete any of the ground of appeal in the course of hearing of appeal or before the hearing of appeal.”
2. At the outset, the Ld. AR submitted that there was a delay of 1080 days in filing the appeal before Ld.CIT(A) which was not condoned. He submitted that the assessee was disallowed the claim of deduction u/s 80P by CPC vide intimation dated 25/11/2021 passed u/s 143(1)(a) of the Act. The Ld. AR submitted that upon receipt of the same, the assessee proceeded to file a rectification petition u/s 154 of the Act, which was disposed of by order dated 03/03/2022. The Ld. AR submitted that, in the meantime, the managing committee of the assessee underwent a change and it was only when the assessee received the demand notice that it came to its knowledge about the order having passed by the Ld. First Appellate Authority.
