Prabhadevi Unique Industrial Premises Co-operative Society Ltd. v/s. ITO-21(2)(5)

Parties Involved

Facts Summary

The assessee, Prabhadevi Unique Industrial Premises Co-operative Society Ltd., filed an appeal against the order of the Commissioner of Income-tax (Appeals), Mumbai, dated 08.10.2021, which disallowed the deduction of interest earned from deposits with a co-operative bank under Section 80P(2)(d) of the Income-tax Act, 1961. The assessee claimed that the interest income from its investments with Saraswat Co-operative Bank should be eligible for deduction under Section 80P(2)(d). The lower authorities, including the Commissioner of Income-tax (Appeals) and the Assessing Officer, had denied the claim, holding that the co-operative bank is a commercial bank and does not fall under the purview of Section 80P(2) of the Act.…

Legal Issues

• 1. Whether the interest income derived by a co-operative society from its investments held with a co-operative bank is eligible for deduction under Section 80P(2)(d) of the Act?

Judgment Outcome

Decided in favour of Assessee.

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