https://www.taxtmi.com/caselaws?id=357859 ITAT Pune held that interest on fixed deposits created from statutory reserve funds, deposited with approval under the Maharashtra Co-operative Societies Act, had a sufficient business nexus with the assessee society's credit activity and was eligible for deduction under section 80P(2)(a)(i). The deposits were distinguished from idle surplus funds, so the ratio of Totgar's Co-operative Sale Society Ltd. did not apply on the facts. However, interest earned on savings account deposits was not treated as similarly linked to the society's business activity and was not allowed the same deduction. en-us Fri, 22 Dec 2017 00:00:00 +0530 Sat, 31 Mar 2018 07:18:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357859 ITAT Pune held that interest on fixed deposits created from statutory reserve funds, deposited with approval under the Maharashtra Co-operative Societies Act, had a sufficient business nexus with the assessee society's credit activity and was eligible for deduction under section 80P(2)(a)(i). The deposits were distinguished from idle surplus funds, so the ratio of Totgar's Co-operative Sale Society Ltd. did not apply on the facts. However, interest earned on savings account deposits was not treated as similarly linked to the society's business activity and was not allowed the same deduction. Case-Laws Income Tax Fri, 22 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357859