9911796707
TMI Blog2024 (6) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... case of AO that it is an incorrect claim made by the assessee as per explanation (a) of that section. Therefore, the disallowance of deduction under section 80P(2)(d) of the act is not permitted adjustment under the provisions of section 143 (1) of the act - Such adjustment made is beyond the powers and therefore such an intimation deserves to be quashed and hence quashed. Deduction u/s 80P - Assessee is entitled to deduction u/s 80P(2)(d) for the reason that assessee has placed the sum with the Maharashtra State cooperative bank which is also cooperative society as per Maharashtra cooperative societies act. Therefore, in terms of the provisions of section 80(P)(2)(d) read with the provisions of section 2(19) of the income tax act where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M) For the Assessee : Ms. Ritu Punjabi For the Department : Shri R.R. Makwana ORDER 1. This appeal is filed by Rehanabad cooperative housing society Ltd, Mumbai (the assessee/appellant) for assessment year 2021 22 against the appellate order passed by The Additional Commissioner/Joint Commissioner Of Income Tax (A) Indore (the learned CIT A) dated 31/10/2023 wherein the appeal filed by the assessee against intimation under section 143 (1) of The Income Tax Act, 1961 dated 19/10/2022 passed by the central processing Centre Bangalore [ the ld. AO ] wherein the assessee was denied the benefit of deduction under section 80P(2)(d) of the act of Rs. 510,497/ and on appeal it was confirmed. 2. Thus, the only grievance of the assessee is that the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est from the Maharashtra State cooperative bank. 6. Assessee aggrieved with that appellate order is in appeal before us. 7. The learned authorized representative vehemently submitted that. i. The assessee is a co-operative society, and it has received interest from a cooperative bank which is also cooperative society and therefore the assessee is entitled to deduction under section 80P(2)(d) of the act. ii. that there is no provision u/s 143 (1) of The Act to make an adjustment with respect to the disallowance under section 80P(2)(d) of the act , it is also not an incorrect claim and therefore the adjustment itself is invalid. iii. in the case of the assessee for assessment year 2020 21 identical issues arose in ITA number 331/M/2023 wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and deduction under chapter VIA of Rs. 560,497/ under section 80P of the act was claimed and net taxable income was disclosed at Rs. 1,812,115. This return of income was processed under section 143 (1) of the act on 19th October 2022 and the deduction of Rs. 510,497 claimed by the assessee under section 80P(2)(d) of the act was denied and the income of the assessee was assessed at Rs. 2,322,650/ . 10. Thus, the first issue that arises before us is whether such an adjustment can be made under the provisions of section 143 (1) of the act or not. We find that under the provisions of section 143 (1) of the act following adjustments are permitted:- (a) the total income or loss shall be computed after making the following adjustments, namely: (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluru, in this case is beyond the powers and therefore such an intimation deserves to be quashed and hence quashed. 12. Even otherwise on the merits of the case the assessee is entitled to deduction under section 80P(2)(d) of the act for the reason that assessee has placed the sum with the Maharashtra State cooperative bank which is also cooperative society as per Maharashtra cooperative societies act. Therefore, in terms of the provisions of section 80(P)(2)(d) read with the provisions of section 2(19) of the income tax act where the definition of cooperative societies is provided and further reading the same with respect to the Maharashtra cooperative societies act, it is apparently clear that the cooperative banks are also the cooperativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Parliament in order to encourage and promote the growth of the cooperative sector generally in the economic life of the country and must therefore, berated liberally and in favour of the assessee. Even otherwise if the strict interpretation of the law is made, the assessee is entitled to the deduction under section 80P(2)(d) of the act with respect to the interest earned by the assessee on its investment with other cooperative banks who are in fact cooperative societies as per the Maharashtra State cooperative societies act. 16. Accordingly, the learned CIT A is not correct in not allowing the assessee deduction under section 80P(2)(d) of the act on such interest income. Hence the order of the learned CIT A reversed, and the learned as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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