Deduction for interest from a co-operative bank allowed under section 80P(2)(d) following prior jurisdictional precedent.

Interest received from a co-operative bank was treated as eligible for deduction under section 80P(2)(d) on the basis of earlier jurisdictional High Court and Tribunal decisions that regarded co-operative banks as co-operative societies for this purpose. The disallowance was set aside and the assessee's deduction claim was allowed. The alternative grounds were rendered academic.

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Issues: Whether the assessee was entitled to deduction under section 80P(2)(d) of the Income-tax Act, 1961 in respect of interest received from a co-operative bank.

Analysis: The claim was examined in the light of earlier decisions of the jurisdictional High Court and the Tribunal, which had treated co-operative banks as co-operative societies for the purpose of the deduction and had allowed similar relief on interest income earned from such banks.

Conclusion: The disallowance of deduction under section 80P(2)(d) was set aside and the assessee's claim was allowed. The alternative grounds were rendered academic.

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