Section 80P(2)(d) deduction applies to interest from fixed deposits with co-operative banks, following co-operative society treatment.

Interest earned by a co-operative society on fixed deposits placed with co-operative banks was treated as eligible for deduction under section 80P(2)(d) of the Income-tax Act, 1961. The Tribunal followed coordinate Bench rulings holding that a co-operative bank remains a co-operative society for this purpose, so interest derived by one co-operative society from investments with another co-operative society in the form of a co-operative bank falls within the deduction provision. On that basis, the assessee's interest income was covered by section 80P(2)(d), and the Revenue's objection failed.

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Issues: Whether interest earned by a co-operative society on fixed deposits placed with co-operative banks is eligible for deduction under section 80P(2)(d) of the Income-tax Act, 1961.

Analysis: The Tribunal noted that coordinate Benches had consistently held that a co-operative bank continues to be a co-operative society for the purpose of section 80P(2)(d), and that interest derived by a co-operative society from investments with a co-operative bank falls within the statutory deduction. Following those decisions, the Tribunal accepted that the assessee's interest income from fixed deposits with co-operative banks was covered by the provision.

Conclusion: The deduction under section 80P(2)(d) was allowable to the assessee and the Revenue's challenge failed.

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