https://www.taxtmi.com/caselaws?id=778221 Interest on deposits compulsorily maintained under statutory co-operative law requirements was treated as having a direct business nexus, so it was held eligible for deduction under section 80P(2)(a)(i). In contrast, interest earned on surplus or idle funds parked in banks merely to earn income was held not attributable to the business of providing credit facilities and not deductible under section 80P(2)(a)(i); it also did not fall within section 80P(2)(d) where the recipient was not a co-operative society. Such income, if assessed under the head 'Income from other sources', may attract deduction of permissible expenditure under section 57, subject to verification and recomputation. en-us Thu, 17 Jul 2025 00:00:00 +0530 Wed, 10 Sep 2025 15:13:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778221 Interest on deposits compulsorily maintained under statutory co-operative law requirements was treated as having a direct business nexus, so it was held eligible for deduction under section 80P(2)(a)(i). In contrast, interest earned on surplus or idle funds parked in banks merely to earn income was held not attributable to the business of providing credit facilities and not deductible under section 80P(2)(a)(i); it also did not fall within section 80P(2)(d) where the recipient was not a co-operative society. Such income, if assessed under the head 'Income from other sources', may attract deduction of permissible expenditure under section 57, subject to verification and recomputation. Case-Laws Income Tax Thu, 17 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778221