Appeal granted for housing cooperative society's deduction under Section 80P(2)(d)

The appeal against the order of the ld PCIT-12, Delhi for AY 2017-18 was allowed. The tribunal found that the appellant, a housing cooperative society, was entitled to deduction under Section 80P(2)(d) for interest income earned from deposits with banks for constructing residential flats. It was held that the appellant falls under the category of a cooperative society and not a cooperative bank, supporting the claim for deduction. The revisionary order under Section 263 was set aside, restoring the original assessment order for the year in question.

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Issues:
The appeal against the order of the ld PCIT-12, Delhi for AY 2017-18.

Grounds of Appeal:
1. Challenge to the order passed by the learned Pr. CIT under section 263 of the Act.
2. Dispute over the applicability of Section 263 of the Income Tax Act, 1961.
3. Disallowance of exemption of interest income earned by the appellant from funds with Delhi State Co-operative Bank Ltd.
4. Allegations of arbitrariness, illegality, and violation of jurisprudential principles in the appellate order.

Assessee's Argument:
The impugned revisionary order under Section 263 is challenged as being legally unsound and inapplicable to the case. The appellant's counsel cited a relevant case to support the claim for deduction under Section 80P(2)(d) for interest income from the cooperative bank.

Revenue's Argument:
The Revenue relied on a case precedent to argue against the assessee's claim under Section 80P(2) for interest earned from deposits with the cooperative bank.

Final Decision:
After considering the submissions, it was noted that the appellant, a housing cooperative society, earned interest income from deposits with banks for constructing residential flats. The tribunal found that the appellant falls under the category of a cooperative society and not a cooperative bank, thus entitled to the deduction under Section 80P(2)(d). Citing relevant case law, it was concluded that the AO was correct in allowing the claim, and the revisionary order under Section 263 was set aside, restoring the original assessment order for AY 2017-18. The appeal was allowed on merits.

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