TaxTMI 
TaxTMI 
2026 (9) TMI 1434
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.... 154 of the Income Tax Act, 1961 (the Act) dated 28.04.2023 passed by the ITO Ward-31(2(1), Mumbai for all the three AYs. 2. Since all these appeals are furnished to assail the impugned appeallate orders by first appellate authority on identical issue, which are interconnected and decided under similar worded impugned orders by ld. CIT(A), the same therefore, for the sake of brevity, are heard together and taken up for adjudication under this common order. 3. ITA No. 7121/Mum/2025 for AY 2012-13 has been taken as the lead case wherein our observations, discussion and decision shall have equal application to the remaining two appeals also. 3. The assessee in all the appeals has raised the similar grounds of appeal, except variation ....
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.... under section 80P(2)(d) for Rs. 2,66,556/-. Being aggrieved with such disallowance, assessee preferred to file an application for rectification under section 154 of the Act before the Jurisdictional AO (JAO), but JAO rejected the request of assessee vide order u/s 154 dated 28.04.2023, stating that there is no mistake apparent on record. 5. Aggrieved with the aforesaid rectification order, assessee preferred an appeal before the ld. CIT(A), who also had dismissed the appeal of assessee with the observations that the return filed by the assessee was beyond the stipulated date of filing of return of income under section 139(1), therefore as per the prevailing jurisdictional interpretation of section 80A(5) r.w.s. 139(1) of the Act, any de....
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....023, according to which the pre-condition of filing of return on or before the due date specified under section 139(1) is applicable for the period commencing from 1st day of April 2006 but before 1st April 2018 on deductions admissible u/s 80IA, 80IB, 80IAB, 80IB, 80IC, 80ID or 80IE only and thereafter from 1st April 2018 the precondition to file the return before specified date u/s 139(1) would apply to all the deductions under chapter VIA, heading "C-Deductions in respect of certain incomes". It is further clarified in the said Circular that for AYs 2018-19 to 2022-23, the Chief Commissioner of Income Tax and Director General of Income Tax are directed to admit all pending as well as new application for condonation of delay in furnishing....
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....ore us a decision from the ITAT, SMC Bench, Mumbai in ITA No. 5769/Mum/2025 dated 27.11.2025 in the case of Shree Raj Crystal Co-op. Housing Society Ltd. Vs. ADIT, CPC, Bangaluru, wherein the claim of deduction under section 80P, on the interest income earned from Saraswat Co- operative Bank was allowed following the decision in the case of Pathare Prabhu Co-operative Housing Society Ltd. Vs. ITO (ITA No. 1346 & 1347/M/2023 decided on 27.07.2023 [2023] 153 taxmann.com 714 (Mum. - Trib.), having following relevant observations: "We are of the considered view, that though the co-operative bank pursuant to the insertion of Sub-section (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but howev....
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....ught to our notice on this aspect. We have to, with our highest respect to both the views of the Hon'ble High Court, adopt an objective criterion for deciding as to which decision of the Hon'ble High Court should be followed by us. We find guidance from the judgment of the Hon'ble Supreme Court in CIT v. Vegetable Products Ltd., [1972] 88 ITR 192. In the aforesaid decision, the Hon'ble Supreme Court has laid down a principle that "if two reasonable constructions of a taxing provisions are possible, that construction which favours the Assessee must be adopted". 14. Therefore, in view of the above, we uphold the plea of the Assessee and direct the AO to grant the deduction under section 80P(2)(d) of the Act to the Ass....
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.... a Co-operative Society also, the interest income received from the said Bank would entitle for claim of deduction under section 80P(2)(d) as held in Shree Raj Crystal Co- Operative Housing Society Ltd. (supra) 13. In light of aforesaid facts, circumstances and observations, respectfully following the Jurisprudence referred to supra, we are of the considered view that the disallowance of exemption claimed under section 80P(2)(d) in processing of return under section 143(1) of the Act and thereafter rejection of rectification under section 154 was not in accordance with the settled principle of law. The assessee herein is entitled for the claim of deduction under section 80P(2)(d) of the Act on receipt of interest income from Saraswat Co-....