https://www.taxtmi.com/caselaws?id=456191 ITAT Delhi held that interest income from FDRs and savings bank accounts of a cooperative society should be classified as business income rather than income from other sources. The tribunal reasoned that when borrowed funds are temporarily parked in investments while awaiting deployment for lending to members, such investment activity is integral to the business operations. Following SC precedent in National Co-operative Development Corporation, income from short-term investments of business funds is assessable under business income head. The assessee was deemed eligible for deduction under section 80P(2)(a)(i) if interest was earned from deposits in other cooperative banks, subject to factual verification by the assessing officer. en-us Mon, 28 Feb 2022 00:00:00 +0530 Sat, 06 Jul 2024 06:35:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456191 ITAT Delhi held that interest income from FDRs and savings bank accounts of a cooperative society should be classified as business income rather than income from other sources. The tribunal reasoned that when borrowed funds are temporarily parked in investments while awaiting deployment for lending to members, such investment activity is integral to the business operations. Following SC precedent in National Co-operative Development Corporation, income from short-term investments of business funds is assessable under business income head. The assessee was deemed eligible for deduction under section 80P(2)(a)(i) if interest was earned from deposits in other cooperative banks, subject to factual verification by the assessing officer. Case-Laws Income Tax Mon, 28 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456191