Deduction under Section 80P(2)(d) for interest on fixed deposits affirmed, permitting the cooperative society's claim and deleting the addition.

Application of the Income-tax Act deduction for cooperative societies focuses on whether interest on fixed deposits qualifies under Section 80P(2)(d); the analysis applies statutory text and binding precedent, notably the Supreme Court decision in Mavilayi Service Cooperative Bank Ltd., to conclude that such interest income falls within the permitted deduction. The operative effect is that the assessing officer's addition is deleted and the deduction is allowable to the cooperative housing society, with precedent governing the tax treatment of similar interest receipts.

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Issues: Whether the appellant cooperative housing society is entitled to deduction under Section 80P(2)(d) of the Income-tax Act, 1961 in respect of interest earned on fixed deposits.

Analysis: The question requires application of Section 80P(2)(d) of the Income-tax Act, 1961 to interest income earned by the cooperative housing society on fixed deposits. The legal framework includes the statutory text of Section 80P(2)(d) of the Income-tax Act, 1961 and authoritative precedent, particularly the decision in Mavilayi Service Cooperative Bank Ltd. (431 ITR 1) of the Hon'ble Supreme Court, together with consistent decisions of coordinate benches of the Tribunal. These authorities establish that interest income of the nature earned by the appellant falls within the scope of deduction under Section 80P(2)(d) of the Income-tax Act, 1961.

Conclusion: The deduction under Section 80P(2)(d) of the Income-tax Act, 1961 is allowable in favour of the appellant; the addition made by the assessing officer is deleted and the appeal is allowed.

Ratio Decidendi: Section 80P(2)(d) of the Income-tax Act, 1961 permits deduction for the relevant interest income earned by a cooperative society, as affirmed by the Supreme Court in Mavilayi Service Cooperative Bank Ltd., and such precedent governs the present dispute.

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