2026 (4) TMI 1526

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 'the Act') for Assessment Years 2015-16 & 2017-18, date of orders 12.08.2025. The impugned orders emanated from the orders of the Ld. Assistant Commissioner of Income Tax -19(3), Mumbai (for brevity the 'Ld. AO') order passed under section 143(3) of the Act date of order 29.12.2017 for AY 2015-16 & 31/10/2019 for AY 2017-18. 2. Since both the appeals arise from identical facts and involve a common issue, for convenience they were heard together and are being disposed of by way of this common order. ITA No. 6928/Mum/2025 is treated as the lead case, and the decision rendered therein shall apply mutatis mutandis to ITA No. 6929/Mum/2025. ITA No.6928/Mum/2025, AY 2015-16. 3. The assessee has preferred the present appeal before the Be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nder section 80P(2)(d) of the Act. Section 80P(4) does not permit the deduction of interest of co-operative banks. The Ld.DR fully relied on the orders of the revenue authorities. 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. Ld. AR contended that the Ld. CIT(A) cited various judicial precedents but the inference drawn in the instant matter as compared to the matter relied upon by Ld.CIT(A) that the assessee had received interest income from Co-operative Banks and the Nationalised Banks and the same was claimed as deduction u/s 8....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n'ble Supreme Court in PCIT Vs Annasaheb Patil MathadiKamgar Sahakari Pathpedi Limited, Civil Appeal No. 8719/2022 dated 20/04/2023, reported in (2023) 150 taxmann.com 173 (SC) it is held that, "............Even otherwise, on merits also and taking into consideration the CBDT Circulars and even the definition of Bank under the Banking Regulation Act, the respondent/Assessee cannot be said to be Co-operative Bank/Bank and, therefore, Section 80(P)(4)shall not be applicable and that the respondent/Assessee shall be entitled to exemption/benefit under Section 80(P)(2) of the Income Tax Act." 9. The respectful reliance was placed in the order of the Hon'ble Supreme Court in Kerala State Co-Operative Agricultural And Rural De....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ur of the assessee. So, the interest earned from investment in cooperative bank is allowable deduction U/s 80P(2)(d) of the Act. The addition amount to Rs. 13,58,165/- is quashed. 11. The second ground pertains to the taxability of hoarding charges earned by the assessee. The assessee had treated such receipts as rental income under the head "Income from House Property" and accordingly claimed standard deduction under section 24(a) of the Act. However, the Ld. AO rejected the assessee's claim and assessed the entire receipts under the head "Income from Other Sources." During the course of hearing, the Ld. AR submitted that the issue is squarely covered in favour of the assessee by the decision of the Coordinate Bench of the ITAT, Mumb....