Appeal Allowed: Deduction u/s.80P(2)(d) Granted for Interest & Dividend Income

The appeal was allowed, and the deduction u/s.80P(2)(d) for interest and dividend income from Pune District Central Co-operative Bank was granted by the Tribunal.

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Issues involved:
The only issue raised in this appeal is against not allowing deduction u/s.80P(2)(d) in respect of interest and dividend income from another cooperative bank.

Summary:

Issue 1: Deduction u/s.80P(2)(d) for interest and dividend income from cooperative bank

The assessee appealed against the order disallowing deduction u/s.80P(2)(d) for interest and dividend income from Pune District Central Cooperative Bank. The Assessing Officer and CIT(A) did not allow the deduction based on a judgment of the Supreme Court. The Tribunal noted that co-operative societies are eligible for deduction u/s.80P(2)(d) for interest income on investments/deposits with a co-operative bank. Referring to a previous decision, the Tribunal held that the provision of section 80P(4) does not affect the eligibility of co-operative societies for deduction u/s.80P(2)(d). As Pune District Central Co-operative Bank is a registered co-operative society, the Tribunal directed to grant deduction u/s.80P(2)(d) for the interest and dividend income earned from the bank. The appeal was allowed, overturning the previous order.

Conclusion:
The appeal was allowed, and the deduction u/s.80P(2)(d) for interest and dividend income from Pune District Central Co-operative Bank was granted by the Tribunal.

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