https://www.taxtmi.com/caselaws?id=465787 The dominant issue was whether interest earned by a co-operative credit society from deposits with a treasury and scheduled banks qualifies for deduction under s. 80P. Applying the HC ruling that such interest is merely an accretion to profits from the society's principal activity of providing credit facilities to members, the ITAT held that depositing surplus funds prudently does not alter the character of the underlying business income, and the Act cannot be construed to penalize such financial conduct. Consequently, the assessee was held entitled to deduction under s. 80P(2)(d) in respect of interest from the treasury and scheduled banks, and the appeal was allowed. en-us Mon, 27 Jan 2025 00:00:00 +0530 Thu, 08 Jan 2026 21:13:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465787 The dominant issue was whether interest earned by a co-operative credit society from deposits with a treasury and scheduled banks qualifies for deduction under s. 80P. Applying the HC ruling that such interest is merely an accretion to profits from the society's principal activity of providing credit facilities to members, the ITAT held that depositing surplus funds prudently does not alter the character of the underlying business income, and the Act cannot be construed to penalize such financial conduct. Consequently, the assessee was held entitled to deduction under s. 80P(2)(d) in respect of interest from the treasury and scheduled banks, and the appeal was allowed. Case-Laws Income Tax Mon, 27 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465787