2025 (11) TMI 1130

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....ssment Year 2020-21, date of order 07.03.2025. The impugned order was emanated from the order of the Central Processing Unit, Income-tax Department (in short, 'the Ld. A.O.') passed under section 143(1) of the Act, dated 25/11/2021. 2. We heard the rival submissions and considered the documents available on the record. The assessee is a co-operative housing society incorporated in March, 2012 and registered with the Registrar of Co-operative Societies. For impugned assessment year, the assessee filed the return declaring Nil income. The assessee, in the return had claimed deduction under section 80P(2)(d) of the Act, amount to Rs. 1,75,460/- on account of interest received from investment in co-operative banks. The return was processed u....

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....ITA Nos 332 to 334/Mum/2025 order dated 06/03/2025, wherein it has been held as follows:- "6. We heard the rival submissions and considered the documents available on record. The only issue as agitated by the assessee society related to interest and dividend from co-operative banks which is claimed as deduction under section 80P(2)(d) of the Act. The Ld. CIT(A) in his order had referred the judgement of Hon'ble High Court of Gujarat in the matter of Katlary Kariyana Merchant Sahkari Sarafi Mandali Ltd v. ACIT [2022] 140 taxmann.com 602 (Gujarat) wherein the deduction of 80P(2)(d) were not allowed to the appellant. The Ld. AR distinguished that inference drawn in the instant matter as compared to the matter relied upon by Ld.CIT(A) ....

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....d learned advocates for the respective parties and considering the controversy arising in these tax appeals, we are of the opinion that the controversy sought to be canvassed with regard to deduction under section 80P(2)(d) of the Act is no more res integra in view of the decision of this Court in case of Katlary Kariyana Merchant Sahkari Sarofi Mandali Ltd. (supra) as well as in case of State Bank of India (supra) wherein it was held that the deduction of under section 80P(2)(d) of the Act is available to the cooperative societies on the income earned as interest on the investment made with the cooperative bank which in turn, is a cooperative society itself. In the matter of PCIT v. Shree Madhi Vighag Khand Udyog Sahakari Mandli L....

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....wed and the order(s) of the Kerala High Court and other authorities to the contrary are set aside. Consequently, we hold that the appellant is entitled to the benefit of deduction under Section 80P of the Act." 8. The further reliance was placed on the following judgments of coordinate bench of ITAT which are as follows. i) (2014) 44 Taxmann.com 123 (Panaji Trib.) Tarani Mahila Co-op Credit Society Ltd. ii) (2014) 50 Taxmann.com 210 (Pune Trib) - MSEB Employees Co-op Cr Soc. Ltd iii) (2014) 59 Taxmann.com 97 (Bang Trib) Bagalkot District State Govt. Employees Co-op Credit Soc. Ltd. iv) (2014) 60 Taxmnn.com 163 (Hyderabad Trib)-Metrocity Criminal Courts Employees Mutually Aided Co-op. Credit Socie....