IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “F” Bench, Mumbai.

Before Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM)

ITA No. 3482/MUM/2025 (Assessment Year : 2018-19) Asstt. CIT Sanjay Cooperative Room No. 22, B Wing Credit Society Limited 6th Floor, Ashar IT Park Vs. 1 Sanjay Society Bldg.

Wagle Inds. Estate Uttan Naka Thane West Bhayander, Thane Maharashtra-400 604. Maharashtra-401 106.

PAN : AACAS3872P Appellant Respondent C.O. No. 144/MUM/2025 (Assessment Year : 2018-19)

Sanjay Cooperative Credit Asstt. CIT Society Limited Room No. 22, B Wing

1 Sanjay Society Bldg. Vs. 6^th Floor, Ashar IT Park Uttan Naka Wagle Inds. Estate Bhayander, Thane Thane West Maharashtra-401 106. Maharashtra-400 604.

PAN : AACAS3872P Appellant Respondent Assessee by : Shri Ravindra Naik Revenue by : Ms. Kavita P. Kaushik Date of Hearing : 16/07/2025 Date of pronouncement : 23/07/2025 O R D E R Per Omkareshwar Chidara (AM) :-

The Revenue filed an appeal in this case with following grounds of appeal :-

1. On the facts and in circumstances of the case and in law, the ld.CIT(A) has erred in not appreciating the fact that co-operative bank is a commercial bank and does not fall under the purview of "Co- operative Society" referred in Section 80P(2)(d) of the Income Tax Act, 1961 and therefore the assessee society is not eligible for deduction u/s.80P(2)(d) of the Income Tax Act, 1961.

2. On the facts and in circumstances of the case and in law, the Ld.

CIT(A) erred in not appreciating that the assessee has also earned income from Dena Bank, which admittedly is not a co-operative bank, but a commercial bank.

3. The Ld.CIT(A) has mentioned in Para 9, that it is not section 80P makes it clear that deduction uls.80P(2)(d) is only available for deposits made in cooperative societies while in the instant case the assessee earned interest from investment made in a bank and not a cooperative society and therefore the assessee was not eligible for deduction. The CIT(A) has further mentioned that this view was upheld in the decision of Hon'ble Supreme Court in the case of Totgars Co-operative Society 322 ITR 283. On the facts and in circumstances of the case, the ld.CIT(A) erred in ignoring the Hon'ble SC decision and following various jurisdictional ITATs decisions.

2. The appellant Society filed a Cross Objection with following grounds of appeal :-

1. The assessee being a co-operative credit society is entitled for deduction of its entire income including interest from co-operative and nationalized banks u/s 80(P)(2)(a)(i) of The Income Tax Act, 1961

2. Alternatively, the assessee is entitled for deduction u/s 80(P)(2)(d) in respect of interest income earned from other co-operative societies.

3. The assessee being a co-operative society is eligible for deduction u/s

80P(2)(c) amounting to Rs 50,000/-.

4. The appellant further reserves the right to add, amend or alter the aforesaid grounds of appeal as they may think fit by themselves or by their representatives.

3. Since the issue in both the appeals is common and same, the Income Tax Appeal and Cross objection are clubbed and a consolidated order is passed.

4. From the above grounds of appeal of Revenue and from the Cross objection filed by the appellant society, it is observed that the issue deals with deduction of income from interest from cooperative and national banks under section 80P(2)a)(i)/80(P)(2)(d)/80P(2)(c) of the Income Tax Act. The Revenue filed an appeal stating that the appellant society is not entitled to deduction under section 80P for the interest earned from the cooperative banks and placed reliance on the decision of Hon'ble Supreme Court in the case of Totgar Cooperative Society, 322 ITR 283(SC).

5. During the hearing proceedings, the Ld. DR relied on the assessment order and the grounds of appeal and pleaded that the addition made by denying the deduction claimed by appellant under section 80P should be confirmed and the order of Ld. CIT(A) be reversed.

6. Per contra, Ld. AR of the appellant has