2024 (6) TMI 1528 - AT - Income Tax

Deduction under s. 80P(2)(d) allowed on interest from co-operative bank, following consistent precedents for assessee

The ITAT Surat allowed the assessee's claim for deduction under s. 80P(2)(d) on interest income received from a co-operative bank. The Tribunal held that ... Disallowance of deduction u/s 80P(2)(d) on interest received from Co-Op Bank - HELD THAT:- Grounds of appeal raised by assessee is squarely coved by a series of decisions of Surat Tribunal and other benches of Tribunal decisions and decision of Surat Vankar Sahakari Sangh Ltd. [2016 (7) TMI 1217 - GUJARAT HIGH COURT] Also in a latest decision in the case of Althan Bhatar Cooperative Credit Society Ltd. [2024 (8) TMI 164 - ITAT SURAT] also allowed similar relief to that assessee is allowing similar deduction under section u/s 80P(2)(d). Ground No.1 is treated as allowed Assessee, a co-operative society, appealed against disallowance of deduction under section 80P(2)(d) on interest of Rs. 2,08,760 received from Surat District Co-operative Bank for AY 2017-18. The lower authorities treated the interest from a co-operative bank as ineligible for deduction under section 80P(2)(d). The Tribunal noted that there was no dispute regarding the nature or amount of interest income and that this issue is 'squarely covered' by a series of decisions of the Surat Bench and other benches of the Tribunal, as well as the jurisdictional High Court in The Surat Vankar Sahakari Sangh Ltd. v. ACIT. Following these precedents, including the recent decision in Althan Bhatar Cooperative Credit Society Ltd. v. ACIT, the Tribunal held that a co-operative bank is 'primarily a co-operative society' and that interest received from it qualifies for deduction under section 80P(2)(d). Ground No. 1 was allowed, and the alternative grounds under sections 80P(2)(a)(i) and netting of interest were rendered academic.