|The Tax Publishers2020 TaxPub(DT) 5596 (Mum-Trib)
INCOME TAX ACT, 1961
Interest income earned from deposit with the Co-operative Bank qualify i.e., for deduction under section 80P(2)(d).
Deduction under section 80P(2) - Interest derived from investments with cooperative banks - Allowability -
Assessee-society derived interest income from saving bank account and fixed deposits with Co-operative Banks. It claimed deduction of the aforesaid amount under section 80P(2)(d). AO in scrutiny assessment proceedings disallowed assessee's claim of deduction under section 80P(2)(d) on the ground that after insertion of sub-section (4) to section 80P, Co-operative Banks have been taken outside the purview of section 80P. Held: The deduction claimed by the assessee under section 80P(2)(d) of the Act in respect interest derived from investments with the co-operative banks as allowable.
Followed: PCIT v. Totagars Co-operative Sale Society (2017) 392 ITR 74 (Karn) : 2017 TaxPub(DT) 0677 (Karn-HC); Surat Vankar Sahakari Sangh Ltd. v. ACIT (2016) 421 ITR 134 (Guj) : 2016 TaxPub(DT) 3733 (Guj-HC). Applied : K. Subramanian v. Siemens India Ltd. (1983) 15 Taxman 594 (Bom) : (1985) 156 ITR 11 (Bom) : 1985 TaxPub(DT) 0158 (Bom-HC).
FAVOUR : In assessee's favor.
A.Y. : 2015-16
IN THE ITAT, MUMBAI BENCH
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