TaxTMI 
TaxTMI 
2025 (7) TMI 178
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....e years, including the year under consideration. Since these years pertained to a similar issue and were worded identically, the staff of the assessee, due to inadvertence, forwarded only the order for the assessment year 2020-21 to the consultant for taking necessary steps for filing the appeal before the Tribunal. It is further submitted that later on, the assessee came to know of the order passed by the learned CIT(A) for the year under consideration, and thereafter, necessary steps were taken to file the present appeal. Accordingly, the assessee submitted that due to the aforesaid reasons, the present appeal could not be filed within the statutory limitation period. Having considered the submissions of the assessee, we are of the considered view that there was sufficient cause which prevented the assessee from filing the present appeal within the prescribed limitation period. Accordingly, we condone the delay in filing the present appeal and proceed to decide the same on merit. 3. In this appeal, the assessee has raised the following grounds: - "1. The Learned A.O. has erred in reopening the case u/s. 263 on the directions of the CIT when the original Assessment was....
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....ve Bank Rs.1,52,500/- Dividend on shares of Maharashtra State Housing Federation Rs.100 Total (B) Rs.1,52,600/- Total (A) + (B) Rs.16,96,255/-" 9. The Assessing Officer ("AO") vide order dated 01.03.2024 passed under section 143(3) r.w. section 263 r.w. section 144B of the Act disallowed the deduction claimed by the assessee under section 80P(2)(a)(i) of the Act. In its appeal before the learned CIT(A), the assessee raised an alternative ground and also claimed deduction under section 80P(2)(d) of the Act. However, the learned CIT(A), vide impugned order, disallowed the deduction claimed by the assessee under section 80P(2)(a)(i) as well as under section 80P(2)(d) of the Act. Being aggrieved, the assessee is in appeal before us. 10. We find that while deciding a similar issue pertaining to claim of deduction under section 80P(2)(d) of the Act in respect of interest and dividend income earned by the assessee, the Co-ordinate Bench of the Tribunal in assessee's own case in BSNL Employees Junior Co-operative Credit Society Ltd. vs. ITO in ITA No.30/Mum/2025, for the assessment year 2020- 21, vide order dated 25.02.2025, following the decision of Co-ordinate ....
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....operative investments with any other co-operative society, the whole of such income; 10. Thus, for the purpose of provisions of section 80P(2)(d) of the Act, two conditions are required to be cumulatively satisfied - (i) income by way of interest or dividend is earned by the Co-operative Society from the Society. Further, the term "co-operative society" is defined under section 2(19) of the Act as under: "(19) "co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies; 11. In the present case, there is no dispute that the assessee is a Co-Operative Housing Society. Thus, if any income as referred to in sub-section (2) to section 80P of the Act is included in the gross total income of the assessee, the same shall be allowed as a deduction. It is pertinent to note that since the assessee is registered under the Maharashtra Co-operative Societies Act, 1960, it is required to invest or deposit its funds in one of the modes provided in section 70 of the aforesaid Act, which includes investmen....
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....e derived by an assessee cooperative society from its investments held with any other cooperative society, shall be deducted in computing the total income of the assessee. We may herein observe, that what is relevant for claim of deduction under sec. 80P(2)(d) is that the interest income should have been derived from the investments made by the assessee co-operative society with any other cooperative society. We though are in agreement with the observations of the lower authorities that with the insertion of sub-section (4) of sec. 8OP, vide the Finance Act, 2006, with effect from 1-4-2007, the provisions of sec. 80P would no more be applicable in relation to any co-operative bank, other than a primary agricultural society or a primary co-operative agricultural and development bank, but however, are unable to subscribe to their view that the same shall also jeopardise the claim of deduction of a cooperative society under sec. 80P(2)(d) in respect of the interest income on their investments parked with a co-operative bank. We have given a thoughtful consideration to the issue before us and are considered view that as long as it is proved that the interest income is being derived by ....
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....ion for deciding as to which decision of the Hon'ble High Court should be followed by us. We find guidance from the judgment of the Hon'ble Supreme Court in CIT v. Vegetable Products Ltd. (1973) 88 ITR 192. In the aforesaid decision, the Hon'ble Supreme Court has laid down a principle that if two reasonable constructions of a taxing provisions are possible, that construction which favours the assessee must be adopted". 14. Therefore, in view of the above, we uphold the plea of the assessee and direct the AO to grant the deduction under section 80P(2)(d) of the Act to the assessee in respect of interest income earned from investment with Cooperative Banks. Accordingly, we set aside the impugned order passed by the learned CIT(A) for the assessment year 2018-19. As a result, grounds raised by the assessee are allowed." 6. Therefore, in the given set of facts, respectfully following the decision of Coordinate Bench of ITAT cited supra, we allow the claim of assessee for deduction u/s. 80P(2)(d) for Rs. 25,90,948/- in respect of interest and dividend income earned by it from Cooperative Banks. Accordingly, grounds raised by the assessee are allowed." 11. We....