Co-operative society interest deduction upheld for deposits with a co-operative bank under section 80P(2)(d).

Interest income earned by a co-operative society from deposits with a co-operative bank was treated as eligible for deduction under section 80P(2)(d) of the Income-tax Act, following settled tribunal authority and the Supreme Court's ruling in Mavilayi Services Cooperative Bank Ltd. The Tribunal distinguished Totgar's Society on the facts and held that the assessee was entitled to the deduction on the interest in question.

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

Analysis: The appeal was decided on the basis of the settled position that interest income earned by a co-operative society from deposits with a co-operative bank qualifies for deduction under section 80P(2)(d). The Tribunal relied on the cited coordinate bench decisions and the Supreme Court's ruling in Mavilayi Services Cooperative Bank Ltd., and distinguished the contrary reliance placed on Totgar's Society on the facts of the case.

Conclusion: The assessee was held entitled to deduction under section 80P(2)(d) of the Income-tax Act, 1961 on the interest income in question.

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