https://www.taxtmi.com/caselaws?id=422111 The ITAT ruled that interest income from nationalized banks is not eligible for deduction under section 80P of the Income Tax Act. However, it specified that only the net interest income, after deducting expenses, should be taxed under section 56 of the Act. For interest from cooperative banks, deduction under section 80P(2)(d) for cooperative societies was allowed. The ITAT directed the Assessing Officer to determine the interest earned from nationalized and cooperative banks separately for taxation purposes. The appeal was partly allowed, emphasizing the distinction in tax treatment for interest income from different bank sources. en-us Fri, 06 May 2022 00:00:00 +0530 Mon, 09 May 2022 08:40:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422111 The ITAT ruled that interest income from nationalized banks is not eligible for deduction under section 80P of the Income Tax Act. However, it specified that only the net interest income, after deducting expenses, should be taxed under section 56 of the Act. For interest from cooperative banks, deduction under section 80P(2)(d) for cooperative societies was allowed. The ITAT directed the Assessing Officer to determine the interest earned from nationalized and cooperative banks separately for taxation purposes. The appeal was partly allowed, emphasizing the distinction in tax treatment for interest income from different bank sources. Case-Laws Income Tax Fri, 06 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422111