TaxTMI 
TaxTMI 
2025 (2) TMI 1711
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....to add, alter, amend, delete, rescind or withdraw any of the grounds of appeal mentioned hereinabove. 2. I have heard the counsel for both the parties and have perused the material placed on record, judgements cited before me and also the orders passed by the revenue authority. 3. From the records, I noticed that as per the facts of the present case, assessee is an cooperative housing Society and filed its return of income for the year under consideration on 23.09.2023. The return was processed under section 143(1) of the act, thereby disallowing the 80P(2)(d) deduction claimed of Rs. 2,13,980/- as interest received from a cooperative bank. 4. Although assessee preferred appeal, but the same was dismissed. 5. Now before me, Ld. AR submitted that the issue in question is squarely covered by the decision of the coordinate bench of ITAT in the case of Ahuja Tower cooperative Housing Society Limited Vs. ITO in ITA No. 644/Mum/2024. The operative portion of the order is reproduced here in below. 4. The brief facts of the case, as emanating from the record, are: The assessee is a Co-operative Housing Society registered under the Maharashtra State Co-operative Societi....
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....he income earned by way of interest from investments with any other Co-operative Society. Thus, the AO held that the interest income received by the assessee from investments in Co-operative Banks will not be available as deduction under section 80P(2)(d) of the Act. Accordingly, the AO disallowed interest income of Rs. 5,70,79,573, claimed under section 80P(2)(d) of the Act, and added the same to the total income of the assessee. As regards the interest income directly credited to Repair and Maintenance Fund" and "Sinking Fund" by the assessee, the AO held that there is no provision for different treatment of interest income earned from fund reserved for specific purposes such as Repair and Maintenance Fund. Accordingly, the interest income of Rs. 30,19,574 earned from term deposit was treated as "income from other sources" and added to the total income of the assessee. 6. The learned CIT(A), vide impugned order, following the decision of the coordinate bench in Amore Commercial Premises Co-op Society Ltd., in ITA No. 2873 & 2874/Mum./2022, held that income arising in form of interest from investment by the assessee with Co-operative Banks would be eligible for deduction ....
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....n sub-section (1) shall be the following, namely:- (a) ....... (b) ....... (c) ....... (d) in respect of any income by way of interest or dividends derived by the co- operative society from its investments with any other co-operative society, the whole of such income;" 9. 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 Cooperative Society from the investments, and (il) such investments should be 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;" 10. 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....
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....arnataka High Court in Pr.CIT v/s Totagars Cooperative Sales Society, [2017] 395 ITR 611 (Karn.) in support of its conclusion that interest derived from fixed deposits in Cooperative Banks is not eligible for deduction under section 80P(2) (d) of the Act and should be treated as "income from other sources" under section 56 of the Act. We find that the coordinate bench of the Tribunal in Pathare Prabhu Co-operative Housing Society Ltd. v/s ITO, [2023] 202 ITD 464 (Mum-Trib.), while dealing with the aforesaid decision of the Hon'ble Karnataka High Court in Totagars Co-operative Sales Society (supra) in the context of claim of deduction under section 80P(2)(d) of the Act, observed as follows:- "13. We find that the learned CIT(A) has placed reliance upon the decision of the Hon'ble Karnataka High Court in Pr.CIT v/s Totagars Co-operative Sales Society, [2017] 395 ITR 611 (Karn.), wherein it was held that interest earned by the assessee, a Cooperative Society, from surplus deposits kept with a Co- operative Bank, was not eligible for deduction under section 80P(2)(d) of the Act. We find that in an earlier decision the Hon'ble Karnataka High Court in Pr.CIT v/s Tota....