https://www.taxtmi.com/caselaws?id=437771 Interest earned by a co-operative society on fixed deposits placed with co-operative banks from idle or surplus funds was held not deductible under section 80P(2)(a)(i) or section 80P(2)(d) because the income did not arise from the direct activity of providing credit facilities and did not acquire business character merely by reason of the depositor's status. The claim of mandatory business deployment was unsupported. On the alternative plea, the tribunal accepted that only net interest can be taxed after considering expenditure incurred to earn such income under section 57, and remitted the matter to the Assessing Officer for verification of allowable expenditure and any permissible set-off. en-us Fri, 12 May 2023 00:00:00 +0530 Sat, 13 May 2023 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437771 Interest earned by a co-operative society on fixed deposits placed with co-operative banks from idle or surplus funds was held not deductible under section 80P(2)(a)(i) or section 80P(2)(d) because the income did not arise from the direct activity of providing credit facilities and did not acquire business character merely by reason of the depositor's status. The claim of mandatory business deployment was unsupported. On the alternative plea, the tribunal accepted that only net interest can be taxed after considering expenditure incurred to earn such income under section 57, and remitted the matter to the Assessing Officer for verification of allowable expenditure and any permissible set-off. Case-Laws Income Tax Fri, 12 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437771