TaxTMI 
TaxTMI 
2025 (9) TMI 883
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....ort 'the Act') for the A.Y. 2019-20. 2. In this case the Assessee by declaring its return of income at Rs. "Nil" by filing its return of income on dated 31.08.2019, has claimed the deduction of Rs. 1,30,240/- on account of interest income earned from savings bank accounts and fixed deposits accounts detailed below: 1. Cosmos Co-operative Bank (FDR) Rs. 4,467/- 2. Abhyudaya Co-operative Bank (FDR) Rs. 90,611/- 3. Abhyudava Co-operative Bank (FDR) Rs. 24,476/- 4. Abhyudaya Co-operative Bank (SB) Rs. 1,090/- 5. The Maharashtra State Co-op Bank (58) Rs. 9.596/- Total Rs. 130,240/- 3. Such deduction claimed by the Assessee was disallowed by CPC vide intimation/order dated 01.05.2020. 4.....
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.... with the observation of the Ld. Commissioner that an error which is not self evident has to be detected by a process of reasoning, cannot be said to be an error apparent on the face of record. However, the issue involved in this case is now dealt with and decided in favour of the Assessee, by considering relevant provisions of law and the dictum laid down by Hon'ble Apex Court and various High Courts by various courts including by the co-ordinate Bench of the Tribunal in the case of Pathare Prabhu Cooperative Housing Society Ltd. V/s ITO [ITA No. 1346 & 1347/Mum/2023 and reported vide 153 taxmann.com 714 (Mum.Trib)] by holding as under: "8. We have considered the submissions of both sides and perused the material available on reco....
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.... with any other Co-operative 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 Cooperative 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 Mahara....
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....t case. Therefore, we find no merits in the aforesaid reasoning adopted by the AO and upheld by the learned CIT(A) in denying deduction under section 80P(2)(d) of the Act to the assessee. 12. As regards the claim of deduction under section 80P(2)(d) of the Act, it is also pertinent to note that all Co-operative Banks are Co-operative Societies but vice versa is not true. We find that the coordinate benches of the Tribunal have consistently taken a view in favour of the assessee and held that even the interest earned from the Co-operative Banks is allowable as a deduction under section 80P(2)(d) of the Act. In Kaliandas Udyog Bhavan Premises Coop Society Ltd vs ITO, in ITA No. 6547/Mum/2017, vide order dated 25/04/2018, while dealin....
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....cooperative society from its investments made with any other cooperative society, the claim of deduction under the aforesaid statutory provision, viz. Sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society' had been defined under Sec. 2(19) of the Act, as under: '(19) "Co-operative society" means a cooperative society registered under the Cooperative 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;' We are of the considered view, that though the co-operative bank pursuant to the insertion of Sub-section (4) of Sec. 80P would no more be entitled for claim of deduction und....
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....notice on this aspect. We have to, with our highest respect to both the views of the Hon'ble High Court, adopt an objective criterion 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., [1972] 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 res....