The Mangalorean Garden Homes Co-operative Housing Society Limited vs. ITO Ward 23(3)(4)

Parties Involved

Facts Summary

The assessee, a Cooperative Housing Society, claimed a deduction under section 80P(2)(d) of the Income Tax Act for interest earned from investments in Citizen Credit Cooperative Bank Ltd., Sahrawat Cooperative Bank Ltd., and Maharashtra Bank Ltd. The lower authorities disallowed the deduction, arguing that the interest income was not earned from another cooperative society but from cooperative banks engaged in commercial business. The assessee appealed against this decision, arguing that the disallowance was illegal and perverse.…

Legal Issues

• 1. Whether the assessee is entitled to a deduction under section 80P(2)(d) of the Act for interest earned from investments in cooperative banks?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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