https://www.taxtmi.com/caselaws?id=754779 The ITAT Bangalore restored multiple issues to the AO regarding section 80P deductions for a cooperative society. For deduction under section 80P(2)(a)(i), the tribunal held that dealing with non-members should only result in proportionate denial, not complete disallowance, following the SC's Mavilayi Service Co-operative Bank decision. Regarding section 80P(2)(d) deductions on interest income, the AO must examine and allow deductions for interest received from cooperative societies and unlicensed cooperative banks per the SC's Kerala State Co-operative Agricultural Rural Development Bank ruling. Interest on compulsory deposits may qualify as business income under section 80P(2)(a)(i) if mandated by cooperative laws. The AO must also calculate cost of funds deductions under section 57 for interest income taxed under section 56. en-us Fri, 17 May 2024 00:00:00 +0530 Sun, 30 Jun 2024 15:55:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754779 The ITAT Bangalore restored multiple issues to the AO regarding section 80P deductions for a cooperative society. For deduction under section 80P(2)(a)(i), the tribunal held that dealing with non-members should only result in proportionate denial, not complete disallowance, following the SC's Mavilayi Service Co-operative Bank decision. Regarding section 80P(2)(d) deductions on interest income, the AO must examine and allow deductions for interest received from cooperative societies and unlicensed cooperative banks per the SC's Kerala State Co-operative Agricultural Rural Development Bank ruling. Interest on compulsory deposits may qualify as business income under section 80P(2)(a)(i) if mandated by cooperative laws. The AO must also calculate cost of funds deductions under section 57 for interest income taxed under section 56. Case-Laws Income Tax Fri, 17 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754779