Ahimsa Tower Co-op Housing Society Ltd. vs. ITO-Ward 41(3)(1)

Parties Involved

Facts Summary

The assessee, Ahimsa Tower Co-op Housing Society Ltd., a Cooperative Housing Society registered under Maharashtra Co-operative Societies Act 1960, filed an income return for the Assessment Year 2021-2022 on 31.12.2021, disclosing a total income of Rs. 52,880/- after claiming a deduction of Rs. 3,73,747/- under section 80P(2)(d) of the Income Tax Act 1961 on the interest on fixed deposits with Cooperative Banks. The return was processed under section 143(1) of the Act. However, the Assessing Officer/CPC did not allow the deduction of claim under section 80P(2)(d) of the Act as the cooperative bank is an urban commercial bank and does not fall under the purview of cooperative society referred in the Section 80P(2)(d) of the Act. Consequently, the interest income from cooperative banks was taxed under income from other sources, and the total income was assessed at Rs.4,26,630/- and an order was passed under section 143(1) of the Act dated 19.10.2022. Aggrieved by the order, the assessee filed an appeal before the CIT(A), which was dismissed due to delay in filing the appeal. The assessee then filed an appeal with the Hon’ble Tribunal.…

Legal Issues

• 1. Disallowance of deduction claimed u/s. 80P(2)(d) of Income Tax Act 1961
• 2. Disallowance of claim of deduction of interest earned from the co-operative society

Judgment Outcome

Decided in favour of Assessee.

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