https://www.taxtmi.com/caselaws?id=456713 Interest from statutory or earmarked funds of a co-operative credit society was treated as attributable to its credit business and therefore deductible under section 80P(2)(a)(i); the deduction was allowed for interest on reserve fund, bad debt fund and MSSS fund. Subsidy received by the society was also held to be non-capital and connected with business activity, so the deduction was upheld. Disallowance of provision for ex-gratia did not affect the claim because any addition would only enlarge the deduction base. Interest on fixed or general bank deposits required fresh factual verification to determine whether the deposits came from surplus funds or member liabilities, and that issue was remanded. en-us Fri, 15 Dec 2017 00:00:00 +0530 Fri, 09 Aug 2024 20:31:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456713 Interest from statutory or earmarked funds of a co-operative credit society was treated as attributable to its credit business and therefore deductible under section 80P(2)(a)(i); the deduction was allowed for interest on reserve fund, bad debt fund and MSSS fund. Subsidy received by the society was also held to be non-capital and connected with business activity, so the deduction was upheld. Disallowance of provision for ex-gratia did not affect the claim because any addition would only enlarge the deduction base. Interest on fixed or general bank deposits required fresh factual verification to determine whether the deposits came from surplus funds or member liabilities, and that issue was remanded. Case-Laws Income Tax Fri, 15 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456713