https://www.taxtmi.com/caselaws?id=467581 Interest and dividend income from surplus funds invested with co-operative banks, commercial banks and other financial institutions is not operational income from providing credit facilities to members. Such income is treated as income from other sources, so deduction under section 80P(2)(a)(i) is unavailable because it applies only to profits attributable to the qualifying business activity. Deduction under section 80P(2)(d) is also unavailable because it is confined to interest or dividend from investments with another co-operative society, and co-operative banks are excluded for this purpose under section 80P(4). The governing principle is that exemption provisions must be strictly construed, and the character of the income controls eligibility for deduction. en-us Mon, 04 Aug 2025 00:00:00 +0530 Tue, 24 Mar 2026 19:07:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467581 Interest and dividend income from surplus funds invested with co-operative banks, commercial banks and other financial institutions is not operational income from providing credit facilities to members. Such income is treated as income from other sources, so deduction under section 80P(2)(a)(i) is unavailable because it applies only to profits attributable to the qualifying business activity. Deduction under section 80P(2)(d) is also unavailable because it is confined to interest or dividend from investments with another co-operative society, and co-operative banks are excluded for this purpose under section 80P(4). The governing principle is that exemption provisions must be strictly construed, and the character of the income controls eligibility for deduction. Case-Laws Income Tax Mon, 04 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467581