https://www.taxtmi.com/caselaws?id=416493 Interest earned by a co-operative credit society on fixed deposits and RBI securities from temporarily surplus funds was treated as attributable to its lending activities, so deduction under section 80P(2)(a)(i) remained available. Disallowances made by the Assessing Officer, including under section 14A, were held to only enhance business profits and did not alter their eligibility for the deduction. Lending to nominal members also did not disqualify the society, because nominal members were regarded as members under the governing co-operative law. On these principles, the disputed additions and denial of exemption were set aside in substance. en-us Mon, 27 Dec 2021 00:00:00 +0530 Wed, 29 Dec 2021 11:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=416493 Interest earned by a co-operative credit society on fixed deposits and RBI securities from temporarily surplus funds was treated as attributable to its lending activities, so deduction under section 80P(2)(a)(i) remained available. Disallowances made by the Assessing Officer, including under section 14A, were held to only enhance business profits and did not alter their eligibility for the deduction. Lending to nominal members also did not disqualify the society, because nominal members were regarded as members under the governing co-operative law. On these principles, the disputed additions and denial of exemption were set aside in substance. Case-Laws Income Tax Mon, 27 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=416493