https://www.taxtmi.com/caselaws?id=446587 The ITAT Bangalore denied deduction under Section 80P(2)(a)(i)/80P(2)(d) on interest income from co-operative banks, following Karnataka HC precedent in Totgars Co-operative Sales Society case. The tribunal held that interest income from investments in co-operative banks remains "income from other sources" regardless of investment type, and only operational income qualifies for Section 80P deduction. However, the tribunal accepted the alternative argument that cost of funds should be allowed as deduction under Section 57. The case was remanded to the Assessing Officer to examine expenditure incurred for earning interest income and allow such costs as deductions. en-us Fri, 29 Sep 2023 00:00:00 +0530 Wed, 06 Dec 2023 10:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446587 The ITAT Bangalore denied deduction under Section 80P(2)(a)(i)/80P(2)(d) on interest income from co-operative banks, following Karnataka HC precedent in Totgars Co-operative Sales Society case. The tribunal held that interest income from investments in co-operative banks remains "income from other sources" regardless of investment type, and only operational income qualifies for Section 80P deduction. However, the tribunal accepted the alternative argument that cost of funds should be allowed as deduction under Section 57. The case was remanded to the Assessing Officer to examine expenditure incurred for earning interest income and allow such costs as deductions. Case-Laws Income Tax Fri, 29 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446587