https://www.taxtmi.com/caselaws?id=756794 ITAT Kolkata held that interest income from bank deposits by a cooperative society cannot claim deduction under Section 80P(2)(d). The tribunal distinguished between operational funds (used for member loans, eligible for deduction) and idle funds (bank deposits, constituting income from other sources). Following Supreme Court precedent in Totgars Co-operative Sale Society, such interest income falls outside Section 80P purview. However, the matter was remanded to CIT(A) to allow reasonable expenses against the disallowed interest income, with guidance from Kisan Sahkari Chini Mills case for expense quantification. Appeal was partly allowed. en-us Wed, 07 Aug 2024 00:00:00 +0530 Thu, 08 Aug 2024 17:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756794 ITAT Kolkata held that interest income from bank deposits by a cooperative society cannot claim deduction under Section 80P(2)(d). The tribunal distinguished between operational funds (used for member loans, eligible for deduction) and idle funds (bank deposits, constituting income from other sources). Following Supreme Court precedent in Totgars Co-operative Sale Society, such interest income falls outside Section 80P purview. However, the matter was remanded to CIT(A) to allow reasonable expenses against the disallowed interest income, with guidance from Kisan Sahkari Chini Mills case for expense quantification. Appeal was partly allowed. Case-Laws Income Tax Wed, 07 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756794