MUMBAI: The Income-tax Appellate Tribunal (ITAT), Mumbai bench, in the case of Kinjal Heaven Co-operative Society (a housing society) has upheld its deduction claim under section 80P(2)(d) for interest earned on its deposits with a co-operative bank.
Tax tribunal benches in several such cases have held likewise. In this case, during the financial year 2016-17, Kinjal CHS earned interest income on deposits with six co-operative banks aggregating to Rs. 17 odd lakh and claimed deduction under section 80P(2)(d) of the Income-tax (I-T) Act . This deduction was denied by the assessing officer and the CHS lost in its appeal to the Commissioner of Income-tax (Appeals). It then approached the ITAT.
Relying on a catena of judicial decisions relating to this issue, including an apex court order, the ITAT upheld the deduction claimed by the CHS.
As the facts and circumstances for the three following financial years were the same (except for the variance in the amount of interest earned and deduction claimed), the ITAT held that the order would also apply to appeals filed for these years.
