TaxTMI 
TaxTMI 
2024 (12) TMI 1724
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.... at law. b) On the facts and circumstances of the case and in law the AO failed to appreciate that: i. There is no discrepancy either clerical or technical in the return filed. ii. No addition can be made u/s 143(1) unless there is some clerical or technical discrepancies in the return. iii. CPC processed the return without considering the amount of deduction u/s 80P of the Act. iv. In this case, the amount disallowed from the eligible deduction of the assessee is a disallowance that cannot be made without assessment proceedings u/s 143(3) of the Act. c) The appellant, therefore, prays that the disallowance made u/s 154 r.w.s. 143(1) of the Act is bad at law and shall be deleted. GROUND 2 a) On the facts and circumstances of the case, and in Law, CITA erred in confirming the disallowance made by the Income Tax Officer Ward 25(1)(1), Mumbai towards the deduction claimed on Interest earned of Rs. 19,36,819/- from cooperative banks u/s 80P(2)(d) of the Act. b) On the facts and circumstances of the case and in law the CITA and AO failed to appreciate that: i. The assessee is co-operative society el....
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....y Limited also the CPC had disallowed the claim of the assessee u/s 143(1) of the Act and the subsequent appeal before the ld.CIT(A) also went against the assessee. Relevant paras of the order are reproduced below for ready reference: "1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short "Ld.CIT(A)"] dated 30.09.2022 for the A.Y. 2020-21. Brief facts of the case are, assessee is a cooperative housing society and filed its return of income on 21.10.2020 within the extended due date applicable to Cooperative Society u/s. 139(1) of Income-tax Act, 1961 (in short "Act"). 2. During this assessment year assessee earned interest and dividend income from investments in cooperative banks for the year under consideration. Accordingly, assessee claimed deduction u/s. 80P(2)(d) in respect of the above said income earned from cooperative banks while filing the return of income. While processing the assessment u/s. 143(1) of the Act, Centralized Processing Centre, Bangalore disallowed the claim of the assessee u/s. 80P(2)(d) and has not assigned any reasons while proce....
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....-tax (Appeal) failed to appreciate that the Centralized Processing Centre (CPC), Bengaluru erred in disallowing the claim of deduction under Section 80P of the Income Tax Act, 1961 without mentioning any reasons for disallowance of the valid claim while processing the return of income under section 143 (1) of the Income Tax Act, 1961 in as much as in order under section 154 of the Income-tax Act 1961. 4. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Appeal) failed to the Centralized Processing Centre (CPC), Bengaluru erred in disallowing the claim of deduction under Section 80P of the Income Tax Act, 1961 in spite of the fact, that the appellant had filed return of income within the "second due date" applicable in terms of section 139 (1) of the Income Tax Act, 1961 and the intimation issued under section 143 (1) of the Income Tax Act, 1961 had also mentioned due date for filing return of income as "extended due date" since, book of accounts of your appellant were liable to audit under Section 81 of the Maharashtra Co-operative Society Act, 1960. 5. On the facts, and in circumstances of the case, and in law, learne....
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....assessee in appeal is with respect to assessee's eligibility to claim deduction u/s. 80P(2)(d) of the Act on interest income from deposits with Cooperative banks. It is not in dispute that the assessee has earned interest income from deposits with Co-operative Bank. The authorities below have denied the benefit of section 80P(2)(d) of the Act to the assessee on the premise that the interest income is not eligible for deduction u/s. 80P(2)(d) of the Act. 6. The issue whether interest income derived from deposits with cooperative banks is eligible for deduction under section 80P(2)(d) of the Act or not has been considered by Tribunal in catena of decisions. The Co-ordinate Bench in the case of Kaliandas Udyog Bhavan Premises Co-op Society Ltd. Vs. ITO, 94 taxmann.com 15 (Mumbai) after considering various decisions by Hon'ble High Courts and the Tribunal and the provisions of the Act, has held that interest income derived by a co-operative society from investments with a cooperative bank, would be entitled for deduction under section 80P(2)(d) of the Act. The relevant extract of the order reads as under: - "7. We have deliberated at length on the iss....
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....ve 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 'cooperative 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 cooperative bank pursuant to the insertion of Subsection (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but however, as a co-operative bank continues to be a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being enforced in any state for the registration of co-operative societies, therefore, the interest income derived by a cooperative society from its investments held with a co-operative bank, would be entitled for claim of deduction under Sec. 80P(2)(d) of the Act." [Emphasized by us]" 8. Respectfully followin....