TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether interest income earned by a co-operative society from deposits made with co-operative banks is eligible for deduction under section 80P(2)(d) of the Income-tax Act, 1961, and whether the Revenue could deny the claim by relying on section 80P(4) and the decision in Totgars.
Analysis: The Tribunal noted that the assessee had earned interest from deposits placed with co-operative banks and that the finding of the first appellate authority was that all the concerned banks were registered co-operative societies. It held that section 80P(2)(d) allows deduction of income by way of interest or dividends derived by a co-operative society from investments with any other co-operative society, and that the exclusion in section 80P(4) applies to the co-operative bank's own claim to deduction, not to the recipient society's claim under section 80P(2)(d). The Tribunal also found the Revenue's reliance on Totgars to be misplaced on the facts, and followed earlier co-ordinate bench decisions in the assessee's own case and other supportive authorities holding that interest from co-operative banks qualifies for deduction under the provision.
Conclusion: The claim for deduction under section 80P(2)(d) was held allowable, and the Revenue's challenge to the relief granted by the CIT(A) failed.
TaxTMI 
