TaxTMI 
TaxTMI 
2025 (4) TMI 1983
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....x Return filed for AY 2020-21 u/s 139(1) of income Tax Act, 1961, dated 10.02.2021 and rectification is filed u/s 154 dated 09.12.2021. Notice issued under section 143(1) DIN: CPC/2021/A5/184179968 dated 26.11.2021 and notice u/s 154 DIN: CPC /2021 /U5 /195521983 dated 09.12.2021 CPC passed the order u/s 154 which was bad in law. Further learned A.O. has not allowed deduction u/s 80(p)(2)(d) in computation sheet and made addition in Intimation order and retain same stand in rectification also therefore not allowed deduction under section 80(p)(2)(d) of Income Tax Act, 1961. The Assessee is a Co- operative Housing Society and income derived from deposits with cooperative banks is allowed as a deduction under section 80P of Income Tax Act, 19....
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....0. In this matter the tribunal clearly stated that the revenue was playing with words and the Assessee is entitled to the benefit of section 80p2(d) in respect of income received from a cooperative bank. b) This was again confirmed in the case of SBI vs CIT reported in (2016) 72 taxmann.com 64 para 17 the Hon Gujarat High court ruled in favour of the Society. c) ITAT Mumbai in the matter of Saraswat cooperative bank ltd., vs ITO reported on 30.11.1984, approved the position that the bank is a cooperative society entitled to deduction from taxable income u/s 80p2(a)(i) even though the society (bank) was receiving deposits and making loans to non Members. It further allowed exemption of property income u/s 80p(2)(e) as the income was derived ....
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....eved by the order of Ld. CIT(A), assessee has preferred the present appeal before us on the grounds mentioned herein above. 5. All the grounds raised by the assessee are interrelated and interconnected relates to challenging the order of Ld. CIT(A) in confirming the disallowance of deduction u/s 80P(2)(d) of the Act. Therefore, we have decided to take all the issues together and to adjudicate the same through the present consolidated order. 6. At the outset Ld. AR submitted that the issue in question is squarely covered in favour of assessee by the decision of the Coordinate Bench of ITAT in the case of Ashok Tower D Cooperative Housing Society Ltd., Vs. ITO [2024] 163 taxmann.com 598 (Mum). 7. On the other hand, Ld. DR representin....
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....he conditions and to the extent of amount specified from the total income. In subsection 2, clause (d) provides that in respect of income by way of interest on dividend derived by the cooperative society from its investment with any other cooperative society the whole of such income is eligible for deduction. Therefore if the cooperative society makes any investment in another cooperative societies and consequently on any the cooper dividend earned from such investment total sum so is eligible for deduction. 11. The controversy involved here is that the argument of the revenue is that when the assessee has made investment in another cooperative society copy then this deduction is allowable. Therefore according to the if amount is n....
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....e precedents, which also holds the same view, we do not have any hesitation to hold that the amount of investment made by the assessee with cooperative banks in Maharashtra are also investment made in cooperative society. 15. Thus, on plain reading of the sections of the income tax act it is clear that if assessee has made an investment in fixed deposit receipts or in savings bank account, interest earned thereon is eligible for deduction under section 80P(2)(d) of the act. The words of the statute are plain and clear and there is no room for applying any of the principles of interpretation. We are supposed to interpret them as they stand. It is not the claim of the revenue that assessee is not a cooperative society. 16. I....