2026 (5) TMI 1453

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...., date of order 31.12.2025. The impugned order emanated from the order of the CPC, Bengaluru (for brevity the 'Ld. AO') order passed under section 143(1) of the Act date of order 07.06.2019. 2. The brief facts of the case are that the assessee is Cooperative Housing Society registered under the Maharashtra Cooperative Societies Act 1960. During the assessment year the assessee filed the return u/sec. 139 of the Act. The assessee claimed deduction u/sec. 80P(2)(d) of the Act related to interest earned from investment in Cooperative Bank amount to Rs. 15,24,410/-. But during the processing of the return the Ld. AO rejected the assessee's claim and added back the alleged amount with the total income of the assessee. The aggrieved assessee f....

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.... during that time and on visiting the Portal to file as appeal before CIT(A), the appellant came to know of the Intimation passed and realised that appeal for A.Y.2018-19 is not filed. 7. The society had to find out new tax consultant to handle tax as well as appeal matters. There are number of appeals pending before the various authorities. It took some time for the new tax practitioner to understand the matter and take control of all the tax matters. 8 In view of the above, the society was not aware of the tax matter and it was only on adjustment of taxes by the department, the secretary came to know that the demand is pending since no appeal is filed. The new tax consultant was appointed and asked to file the appeal at ....

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.... 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. 80P(2)(d). Whereas in the instant case the assessee had received interest only from Co operative Banks. Section 80P(2)(d) provides for deduction of interest received by a Co-operative Society from another Co-operative Society. A Co-operative Society being a Co-operative Society fits into the permissible pro....

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....en 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 Development Bank Ltd. KSCARDB vs. Assessing Officer, [2023] 458 ITR 384 (SC), it has been held that, "15.14............... Conclusion: In the instant case, although the appellant society is an apex cooperative society within the meaning of the State Act, 1984, it is not a co-opera....