https://www.taxtmi.com/caselaws?id=789824 Interest earned by a co-operative credit society on fixed deposits and investments with nationalised and co-operative banks was treated as attributable to its credit business and therefore deductible under section 80P(2)(a)(i) of the Income-tax Act, 1961. The Tribunal accepted that the deposits represented operational or liquidity funds maintained in the course of providing credit facilities to members, and followed earlier Tribunal decisions supporting deduction on such facts. It held that section 56 and Totgars-type reasoning did not apply to deny relief where the funds were linked to business operations. The disallowance was deleted and the deduction allowed. en-us Thu, 19 Feb 2026 00:00:00 +0530 Wed, 15 Apr 2026 09:05:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789824 Interest earned by a co-operative credit society on fixed deposits and investments with nationalised and co-operative banks was treated as attributable to its credit business and therefore deductible under section 80P(2)(a)(i) of the Income-tax Act, 1961. The Tribunal accepted that the deposits represented operational or liquidity funds maintained in the course of providing credit facilities to members, and followed earlier Tribunal decisions supporting deduction on such facts. It held that section 56 and Totgars-type reasoning did not apply to deny relief where the funds were linked to business operations. The disallowance was deleted and the deduction allowed. Case-Laws Income Tax Thu, 19 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789824