Section 80P(2)(d) permits a co-operative society to claim...

Section 80P(2)(d) permits a co-operative society to claim deduction for interest derived from investments with another co-operative society, and section 80P(4) bars only a co-operative bank from claiming deduction in its own right. The ITAT applied this distinction to interest earned by a co-operative society from deposits placed with co-operative banks, following Sikkim State Cooperative Supply and Marketing Federation and distinguishing Totgars as a case under section 80P(2)(a)(i). It also relied on Doaba Cooperative Sugar Mills to hold that the source of invested funds was not decisive where the income arose from investment with a co-operative society. The disallowance was held unsustainable and the deduction was allowed.

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