IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H”, MUMBAI MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA. No.443/MUM/2026 Assessment Year: 2021-22 LA Royal Co-Operative Assessing Officer, Kautiliya HSG SOC LTD, Top Floor Bhavan Bandra, Mumbai –

Valnai Village, Shankar Vs. 400051.

Lane Kandivali West, Mumbai - 400067.

(Appellant) : (Respondent)

PAN No. AAAAL 2796 H Present for:

Assessee by : Shri Ganshyamlal Kachhara, Ld.

CA.

Revenue by : Shri Pravin Salunkhe (Sr. DR.)

Date of Hearing : 04.03.2026 Date of Pronouncement : 11.03.2026 O R D E R Per : Narender Kumar Choudhry, Judicial Member:

This appeal has been preferred by the Assessee against the order dated 24.12.2025, impugned herein, passed by Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT (A) – 1, Jaipur [in short Ld. Commissioner] u/s 250 of the Income Tax Act, 1961, [in short ‘the Act’] for the A.Y. 2021-22.

2. In the instant case, the Assessee has earned the interest income of Rs.1,03,363/- on fixed deposit made with the MAHARASHTRA STATE COOPERATIVE BANK – Kandivali (W) which was claimed being exempt by the Assessee, however, the same were disallowed by the CPC vide intimation/order dated 19.10.2022 u/s 143(1) of the Act.

3. Thus, the Assessee being aggrieved challenged the said addition/disallowance by filing First Appeal before the Ld. Commissioner however, could not get any relief, as the Ld. Commissioner affirmed the aforesaid disallowances/additions by dismissing the Appeal of the Assessee, vide impugned order under consideration.

4. And thus the Assessee being aggrieved has preferred the instant appeal.

5. We have heard the parties and perused the relevant material available on record. The disallowance qua deduction claimed u/s 80P(2)(D) of the Act, in respect of interest or dividend income earned from cooperative banks, has been examined by various courts including by the Hon’ble Coordinate Bench of the Tribunal (Mumbai) in the case of Pathare Prabhu Co-operative Housing Society Ltd. vs. ITO (ITA No.1346 & 1347/M/2023 decided on 27.07.2023) (2023) 153 taxmann.com 714 (Mum – Trib), wherein the Hon’ble Bench by considering the relevant provisions of the law and judgments concerning the issue, ultimately allowed identical deduction claimed u/s 80P(2)(D) of the Act, by observing and holding as under:

“8. We have considered the submissions of both sides and perused the material available on record. The only dispute raised by the Assessee is against the disallowance of deduction under section 80P(2)(d) of the Act in respect of interest income received from the Co-operative Banks. The Assessee is a registered Co-operative Housing Society and during the assessment year 2018-19 earned interest income of Rs.50,39,861/- from the installments made in various Co-operative Banks.

9. Before proceeding further, it is relevant to note the provisions of section 80P of the Act under which the Assessee has claimed the deduction in the present case. As per the provisions of section 80P(1) of the Act, the income referred to in sub-section (2) to section 80P shall be allowed as a deduction to an Assessee being a Co-operative Society.

Further, section 80P(2)(d) of the Act, reads as under:

“80P. Deduction in respect of income of co-operative societies.

(1) .......

(2) The sums referred to in sub-section (1) shall be the following, namely:- (a) ....... (b) ....... (c) .......

(d) In respect of any income by way of interest or dividends derived by the cooperative society from its investments with any other co-

operative society, the whole of such income”

10. Thus, for the purpose of provisions of Section 80P(2)(d) of the Act, two conditions are required to be cumulatively satisfied – (i) income by way of interest or dividend is earned by the Co-operative Society from the investments, and (ii) such investments should be with any other Co- operative Society. Further, the term ,,co-operative society” is defined under section 2(19) of the Act as under