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IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH MUMBAI

BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER &

SHRI ARUN KHODPIA, ACCOUNTANT MEMBER

ITA Nos. 9139 & 9140/Mum/2025 (Assessment Years: 2021-22 & 2023-24

The Chitrapur Co- Vs. Income Tax Officer, Operative Housing Circle 19(3), Mumbai

Society Ltd. Piramal Chambers, D-1/225, Mumbai – 400012.

Pandurangashram Marg, 27^th Road, T. P. S. III, Bandra West,

Mumbai – 400050.

PAN/GIR No. AAABT0003A (Appellant) .. (Respondent

Assessee by Rohan More Revenue by Virabhadra S. Mahajan (SR.

DR)

Date of Hearing 18/03/2026 Date of Pronouncement 24/03/2026

आदेश / O R D E R

PER AMIT SHUKLA (J.M):

The aforesaid appeals have been filed by the assessee

against the separate impugned orders of even date 29.10.2025 passed by the learned Addl./JCIT (Appeals)-3, Bengaluru (for short “ld. CIT(A)”), arising out of rectification orders passed under section 154 of the Income Tax Act,

ITA Nos. 9139 & 9140/Mum/2025, AYs: 2021-22 & 2023-24 The Chitrapur Co-operative Housing Society Limited

1961 (for short “the Act”) for the assessment years 2021–22

and 2023–24.

2. The common issue involved in both the appeals pertains to

the disallowance of deduction claimed under section 80P(2)(d) of the Act in respect of interest income earned from deposits made with a co-operative bank. In assessment year 2021–22, the claim of deduction disallowed by the Assessing Officer is Rs. 48,54,954/-, and in assessment year 2023–24, the disallowance amounts to Rs. 45,31,200/-. The assessee is a co-operative residential housing society, which had invested its surplus funds, generated from contributions collected from its members, in fixed deposits with SVC Co- operative Bank, which is itself a co-operative society, and had earned interest income to the aforesaid amounts, which was claimed as deductible under section 80P(2)(d). The CPC disallowed the said claim, and the application filed by the assessee under section 154 was also rejected, which action has been affirmed by the ld. CIT(A) on the ground that, with effect from 01.04.2007, section 80P has been amended by insertion of sub-section (4), as per which the provisions of section 80P shall not apply to any co-operative bank other

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ITA Nos. 9139 & 9140/Mum/2025, AYs: 2021-22 & 2023-24 The Chitrapur Co-operative Housing Society Limited

than a primary agricultural credit society or a primary co- operative agricultural and rural development bank, and that there exists a distinction between a co-operative society and a co-operative bank. According to the ld. CIT(A), since the interest has been earned from a co-operative bank, the deduction could not be allowed, further holding that such interest income is liable to be taxed under the head “Income

from Other Sources”.

3. We have heard the rival submissions, perused the orders of

the authorities below, and carefully examined the material placed on record. The controversy, though sought to be projected by the Revenue as one governed by the exclusion contained in section 80P(4), in essence turns upon the correct interpretation of section 80P(2)(d) and the legal character of a co-operative bank vis-à-vis a co-operative society, particularly in the context of interest income earned by one co-operative entity from another. At the outset, it is an admitted position that the issue stands squarely covered by a consistent line of decisions of the Tribunal, including the decision of this Bench in the case of M/s Premium Tower Co-operative Housing Society Ltd. vs. CIT(A) in

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ITA Nos. 9139 & 9140/Mum/2025, AYs: 2021-22 & 2023-24 The Chitrapur Co-operative Housing Society Limited

ITA No. 1583/Mum/2023 dated 17.05.2023, wherein the entire controversy has been examined threadbare after an elaborate analysis of the statutory provisions and judicial precedents. The relevant findings of the Tribunal in the said

case are reproduced hereunder:

“4. After hearing both the parties and on perusal of the impugned order, we find that the only issue is