https://www.taxtmi.com/caselaws?id=457891 ITAT Mumbai allowed the appeal of a cooperative society registered under Maharashtra State Cooperative Societies Act, 1961, granting deduction u/s 80P(2)(a)(i) on interest income from fixed deposits with State Bank of India. The tribunal held that interest earned on surplus funds deposited in banks, which were not immediately required for lending to members, is attributable to carrying on the business of providing credit to members. Following precedents from Karnataka HC and SC, the tribunal distinguished between funds belonging to members versus surplus profits temporarily invested to earn interest while awaiting deployment for member credit facilities. en-us Thu, 27 Jun 2024 00:00:00 +0530 Mon, 30 Sep 2024 08:28:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457891 ITAT Mumbai allowed the appeal of a cooperative society registered under Maharashtra State Cooperative Societies Act, 1961, granting deduction u/s 80P(2)(a)(i) on interest income from fixed deposits with State Bank of India. The tribunal held that interest earned on surplus funds deposited in banks, which were not immediately required for lending to members, is attributable to carrying on the business of providing credit to members. Following precedents from Karnataka HC and SC, the tribunal distinguished between funds belonging to members versus surplus profits temporarily invested to earn interest while awaiting deployment for member credit facilities. Case-Laws Income Tax Thu, 27 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457891