IN THE INCOME-TAX APPELLATE TRIBUNAL “SMC BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER &

SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.6585/MUM/2025 (A.Y. 2013-14)

KCA Cooperative Credit v/s. Income Tax Officer, MUM –

Society बनाम (197)(91), Piramal Chambers, 297, Sant Home, Kalina Lower Parel, Mumbai –

Santacruz East, Mumbai – 400013, Maharashtra

400 098, Maharashtra स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AABAK0750F Appellant/अपीलार्थी .. Respondent/प्रतिवादी

Assessee by : None Revenue by : Shri Brajendra Kumar, (Sr. DR)

Date of Hearing 12.02.2026 Date of Pronouncement 18.02.2026 आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :-

The present appeal arising from the appellate order dated

25.08.2025 is filed by the assessee Trust against the order passed by the Learned Commissioner of Income-tax, Appeal, ADDL/JCIT(A), Agra [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 143(1) of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 16.10.2014 for the Assessment Year [A.Y.] 2013-14.

2. The grounds of appeal are as under:

1. The learned Assessing Officer erred in disallowing interest received from the Cooperative Banks eligible for deduction us 80P 2d of Rs 9,76,373. The learned Assessing Officer further erred in levying interest under section

234A,234B and 234C of Rs.6,032, Rs.54,288 and Rs.11,159 respectively.

2. Your Petitioner further states that the learned CIT(A) also erred in confirming the Order of the assessing officer without considering the submissions made by your Petitioner on 13/02/2025 regarding the merits of the case in response to Notice dt 4/02/2025 filed vide e acknowledgement no 86864851130225.

3. Your Petitioner further states that the Appeal was dismissed only on the grounds that it was filed after the stipulated time for filing the appeal and the case was not discussed on merits.

4. Your Petitioner places reliance on the following judgement in the case of M/s Udaya Ravi Arecanut vs Income Tax Officer Ward no 21 March 2025, wherein it was held that not condoning a delay in filing a appeal would amount to legalizing an illegal Order - ITAT Bangalore.

5. Your Petitioner states that the assesse is a Co-Operative Society registered under The Maharashtra State Co-Operative Act 1960.

6. Your petitioner further states that Co-Operative Banks are registered under the Co-Operative Societies Act in the various states as applicable.

7. Your petitioner states that under the provisions of Section 80P2d, interest received by a registered Cooperative society from a registered Co-

Operative Bank is exempt from Income Tax.

8. Reliance is placed on the various ITAT decisions as mentioned in the Statement of Facts attached.

9. Your Petitioner further prays that interest received of Rs. 9,76,373/- by the Cooperative Credit Society from Cooperative Bank be allowed as deduction us 80P2d of the Income Tax Act 1961 and Interest levied us 234A, 234B and 234C of Rs.6,032, Rs 54,288 and Rs. 11,159/- respectively be deleted.

10. Your Petitioner prays that the delay in filing the appeal be condoned.

3. Brief facts of the case are that the return of income was filed electronically declaring income of Rs. 9,76,373/-. Intimation u/s 143(1) was issued raising a demand of Rs. 3,73,180/-. The Assessing Officer (CPC) disallowed the deduction claimed u/s 80P(2)(d) in respect of interest income earned from deposits with Co-operative Banks, holding that such income was not eligible for deduction under the said provision. The assessee preferred appeal against the intimation u/s 143(1), challenging the disallowance of deduction u/s 80P(2)(d) and consequential levy of interest u/s 234A, 234B, and 234C.

4. It was noted that the appeal before the ld.CIT(A) had been filed belatedly, and condonation of delay had been sought by the appellant stating that the delay in filing the appeal is attributable to change in management and tax consultants. The appeal against the intimation u/s 143(1) dated 16.10.2014 had been filed