Rajat Apartment CoOperative Housing Society Ltd. v. ACIT

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The Tax Publishers2021 TaxPub(DT) 2575 (Mum-Trib)

INCOME TAX ACT, 1961

Section 80P(2)

Following the ratio laid down in the case of Pr. CIT v. Totagars Co-operative Sale Society (2017) 78 Taxmann.com 169 : 2017 TaxPub(DT) 677 (Karn-HC), assessee was entitled for deduction under section 80P(2)(d) in respect of the interest income earned from investment in co-operative banks.

Deduction under section 80P(2) - Disallowance under section 80P(2)(d) on interest income earned from investment in co-operative banks - Eligibility of -

Assessee is a co-operative housing society earning its income by way of subscription, service charges, etc., from its members and interest on savings and Fixed Deposits from co-operative banks. Assessee earned the interest income from its investments in Fixed Deposits and Time Deposits, etc. with co-operative banks. He claimed the interest income as exempt under section 80P(2)(d). However, AO declined the claim made by assessee. Held: High Court in the case of Pr. CIT v. Totagars Co-operative Sale Society (2017) 78 Taxmann.com 169 : 2017 TaxPub(DT) 0677 (Karn-HC) had held that interest which the assessee had earned was from a Co-operative Society Bank Therefore, according to section 80P(2)(d), the said amount of interest earned from a Co-operative Society Bank would be deductable from the gross income of the Co-operative Society. Thus, following the same, assessee was entitled for the deduction under section 80P(2)(d) in respect of the interest income earned from investment in co-operative banks.

Followed:Pr. CIT v. Totagars Co-operative Sale Society 2017 (78 Taxmann.com 169) : 2017 TaxPub(DT) 677 (Karn-HC), Kaliandas Udyog Bhavan Premises Co-op Society Ltd. v. ITO ITA. No.6547/M/2017 for the assessment year 2014-15 dated 25-4-2018 : 2018 TaxPub(DT) 3128 (Mum-Trib), Merwanjee Cama Park Co-op Housing society Ltd. v. ITO ITA. No.6139/M/2014 for the assessment year2010-11 dated 27-9-2017 : 2018 TaxPub(DT) 1580 (Mum-Trib), Jai Mataji Co-operative Credit Society Ltd. v. ITO ITA. No.3334/M/2017 for the assessment year2012-13 dated 14-8-2017, Sea Grean Go-operative Housing Society Ltd. v. ITO [ITA. No.1343/M/2017 for the assessment year2013-14 dated 31-3-2017], Lands End Co-operative Housing Society Ltd v. ITO ITA. No.3566/M/2014 for the assessment year2009-10 dated 15-1-2016 : 2016 TaxPub(DT) 2383 (Mum-Trib) and Bandra Shiv Samruddhi co. v. ACIT [ITA. No.1073/M/2012, dt. 19-4-2013]. Distinguished:Totgars´ Cooperative Sale Society Limited v. ITO (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

IN THE ITAT, MUMBAI BENCH