2026 (7) TMI 606

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.... of the Income Tax Act, 1961 for the Assessment Year 2020-21. 2. The assessee is a Co-operative Housing Society registered under the Maharashtra State Co-operative Housing Societies Act and is engaged in the maintenance and welfare activities of its members. For the year under consideration, it filed its return of income declaring total income of Rs.87,790/- after claiming deduction under section 80P(2)(d) in respect of interest income amounting to Rs.10,63,582/- earned from investments made with various co-operative banks. The return was processed under section 143(1), whereby the Centralised Processing Centre disallowed the deduction claimed under section 80P(2)(d). The said adjustment having been confirmed by the Ld. CIT(A), the asses....

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....ger res integra and stands squarely covered by a consistent line of decisions of this Tribunal, including the recent decision rendered by this Bench in Chitrapur Co-operative Housing Society Ltd. vs. ITO [(2026) 184 taxmann.com 657 (Mum.)], wherein, after considering the entire scheme of section 80P, including sub-sections (2)(d) and (4), it has been categorically held that section 80P(4) merely excludes a co-operative bank, in its own capacity as an assessee, from claiming deduction under section 80P and does not in any manner restrict or dilute the scope of section 80P(2)(d) insofar as it grants deduction to another co-operative society earning interest or dividend from investments made with such co-operative bank. It was further submitte....

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....perative banks, which are only a distinct species of the broader genus of co-operative societies, and the mere fact that such entities are regulated under the Banking Regulation Act or are subject to the supervisory control of the Reserve Bank of India does not alter their fundamental legal character as co-operative societies. 6. The aforesaid view is in consonance with the judgments of the Hon'ble Karnataka High Court in Pr. CIT vs. Totagars Co-operative Sale Society [(2017) 392 ITR 74], the Hon'ble Kerala High Court in Pr. CIT vs. Peroorkada Service Co-operative Bank Ltd. [(2022) 442 ITR 141] and the judgment of the Hon'ble Bombay High Court in Quepem Urban Co-operative Credit Society Ltd. vs. ACIT, which collectively recognise that se....