https://www.taxtmi.com/caselaws?id=436455 The Tribunal allowed the appeal of an Employees Co-operative Credit Society, holding that interest accrued on credit balances with Andhra Bank and Indian Bank qualifies for deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961. The interest income was considered part of business transactions, not taxable under section 56, as it arose from loan disbursements and repayments. The decision aligned with precedent, including Totgars Co-operative Sale Society Ltd. vs. ITO [2010] 188 Taxman 282 (SC), establishing that interest on credit balances with banks is eligible for deduction under section 80P(2)(a)(i). en-us Tue, 11 Apr 2023 00:00:00 +0530 Thu, 13 Apr 2023 08:00:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436455 The Tribunal allowed the appeal of an Employees Co-operative Credit Society, holding that interest accrued on credit balances with Andhra Bank and Indian Bank qualifies for deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961. The interest income was considered part of business transactions, not taxable under section 56, as it arose from loan disbursements and repayments. The decision aligned with precedent, including Totgars Co-operative Sale Society Ltd. vs. ITO [2010] 188 Taxman 282 (SC), establishing that interest on credit balances with banks is eligible for deduction under section 80P(2)(a)(i). Case-Laws Income Tax Tue, 11 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436455