TaxTMI 
TaxTMI 
2025 (2) TMI 1702
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....ccordance with the provisions of the act. Since the assessee is an entity whose accounts are required to be audited under Maharashtra Cooperative Society Act, 1960, therefore, the due date for filing the return of income was 15/02/2021. 4. However, while processing the ITR under section 143(1) of the Act, the following additions were made in the income of the assessee. i) addition of Rs. 31,50,654/- u/s 43B of the Act. ii) deduction claimed u/s 80(P)(2)(d) was denied. 5. Aggrieved by the said additions, assessee preferred appeal, but the same was dismissed by Ld.CIT(A). 6. Aggrieved by the order of Ld. CIT(A) assessee has preferred the present appeal before me on the grounds mentioned hereinabove. a) On the facts and circumstances of the case, and in Law, the CITA erred in confirming the addition made u/s 43B of the act amounting to Rs. 31,50,654/- of the amount of property tax not paid during the year till the date of filing of return. b) On the facts and circumstances of the case and in law the CITA failed to appreciate that: The assessee is co-operative housing society not providing any service to non-member ii The assessee i....
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....any expenditure, leave alone the municipal taxes, under the head income from business profession. Thus, we submit that disallowance U/s 43B is bad at law and the disallowance may please be deleted. 9. On the other hand, Ld. DR appearing on behalf of the department relied upon the orders passed by the revenue authorities. 10. I have heard the counsels for both the parties and have also gone through the material placed on record, orders passed by the revenue authority and the legal proposition put forth before me. 11. From the records, I noticed that with regard to disallowance u/s 43B of the Act, it was observed by the revenue from income and expenditure statement that assessee has claimed "property tax" paid as expenses in income and expenditure statement. Since the said amount was not remitted to the concerned authority on or before the due date of filing of return of income, therefore, the said expenses were disallowed u/s 43B of the Act. 12. Whereas on the contrary, assessee specifically contended that assessee is not having any business and covered under the concept of mutuality, the tax audit was not required. It was further submitted that assessee has fil....
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....iled. ii. No addition can be made u/s 143(1) unless there is some clerical or technical discrepancies in the return. 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 143(1) of the Act is bad at law and shall be deleted. GROUND 3 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 41(1)(1), Mumbai towards the deduction claimed on Interest earned of Rs. 13,47,644/- 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: 1. The assessee is cooperative society eligible to claim deduction u/s 80P(2)(d) of the Act. ii. Cooperative Banks are also Cooperative societies as per the Income Tax Act. Denying the deduction benefit available to the assessee....
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.... of Principal CIT vs. Totagars Co-operative Sale Society (2017) 297 CTR (Kar) 158: (2017) 154 DTR (Kar) 25: (2017) 395 ITR 611 (Kar), the High Court had concluded that a co-operative society would not be entitled to claim of deduction under s. 80P(2)(d). We however find that as held by the Hon'ble High Court of Bombay in the case of K. Subramanian & Anr. vs. Siemens India Ltd. & Anr (1983) 36 CTR (Bom) 197: (1985) 156 ITR 11 (Bom), where there is a conflict between the decisions of non-jurisdictional High Court's, then a view which is in favour of the assessee is to be preferred as against that taken against him. Thus, taking support from the aforesaid judicial pronouncement of the Hon'ble High Court of jurisdiction, we respectfully follow the view taken by the Hon'ble High Court of Karnataka in the case of Principal CIT & Anr. vs. Totagars Co-operative Sale Society (supra) and Hon'ble High Court of Gujarat in the case of State Bank of India vs. CIT (supra), wherein it was observed that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of deduction under s. 80P(2)(d) of the ....
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.... 4 PATHARE PRABHU co OPERATIVE HOUSING SOCIETY LTD. vs. INCOME TAX OFFICER, ITAT, MUMBAI 'C BENCH, ITA Nos. 1346 & 1347/Mum/2023; Asst. yr. 2017-18 and 2018-19 Date of Decision 27th July, 2023, Source (2023) 37 NYPTTJ 1401 (Mumbai): (2023) 202 ITD 464 (Mumbai) JANSEVAK CO OPERATIVE SOCIETY LTD. Us INCOME TAX OFFICER, ITAT, MUMBAI 'F BENCH ITA No. 637/Mum/ 2023; Asst. yr. 2017-18 Date of Decision 26th May, 2023, Source (2023) 37 NYPTTJ 739 (Mumbai) he assessee kept the deposits in Coperative Banks registered under the Maharashtra Co-operative Societies Act and earned interest, which was claimed as a deduction under s. 80P(2)(d)- View that s. 80P(4) is applicable to the assessee who is co- operative bank claims deduction under s. 80P-Hence s. 80P(4) not attracted in this case as the assessee is co-operative society 5 JANSEVAK CO OPERATIVE SOCIETY LTD. Us INCOME TAX OFFICER, ITAT, MUMBAI 'F BENCH ITA No. 637/Mum/ 2023; Asst. yr. 2017-18 Date of Decision 26th May, 2023, Source (2023) 37 NYPTTJ 739 (Mumbai) Assessee is a c operative society, which is engaged in providing credit facilities to its members-Thus, if any income as referred to in sub-s. (2) to s.....
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....ative Bank and NKGSB cooperative bank. 6.1 It may be stated here that the co-ordinate bench of ITAT, Mumbai in large number of cases allowed claims of the assessee where the facts were exactly the same. In ITA NO.2850/MUM/2022 (Α.Υ: 2020-21) in the case of Hilla Heights Co-operative Housing Society 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....
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....king disallowance of claimed under section 80P without appreciating that these were not incorrect claims apparent from any information in the Return of Income in terms of section 143(1) of the Income-tax Act 1961. 3. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-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 t the Income Tax Act, 1961 as in 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) o....
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....e Bench. In this regard, we observe that Coordinate Bench has decided the issue in favour of the assessee in the case of Ashoka Palace Co-Op. Hsg. Soc. Ltd. v. ITO (supra) observing as under: - "5. Both sides heard, orders of authorities below examined. The solitary issue raised by the 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 Co- operative 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....
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....heir investments parked with a cooperative bank. We have given a thoughtful consideration to the issue before us and are of the considered view that as long as it is proved that the interest income is being derived by a co-operative 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 '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 f....
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....ative Bank. Accordingly, the assessee kept the deposits in Co-operative Banks registered under the Maharashtra Co-operative Societies Act and earned interest, which was claimed as a deduction under section 80P(2)(d) of the Act. The AO denied the deduction under section 80P(2)(d) of the Act on the basis that the Cooperative Bank is covered under the provisions of section 80P(4) of the Act. 7. Therefore, respectfully following the decision of the coordinate bench of the cited supra, we direct the AO to grant a deduction under section 80P(2)(d) of the Act to the assessee in respect of the interest on FDR and savings account earned from the Co- operative Banks. Accordingly, the impugned order is set aside and grounds no. 1 raised by the assessee is allowed." 8. It is also noticed that in the case of Sterling Court in ITA No.72- 75/Mum/2024 dated 11.06.2024 'SMC, Mumbai bench has allowed the appeals on exactly similar ground. After detailed analysis of similar facts and the provisions of section 143(1) of the Act, it has been decided that adjustment of disallowance of deduction u/s 80P(2)(d) is not permissible adjustment under section 143(1) of the Act. 9.....