https://www.taxtmi.com/caselaws?id=468646 Interest earned by a co-operative credit society on fixed deposits placed with nationalised banks was treated as attributable to its business activity, rather than income from other sources, where the deposits formed part of the society's operational and reserve-fund structure and were permitted under the applicable State co-operative regime. The Tribunal relied on earlier Pune Bench decisions distinguishing such business-linked deposits from surplus funds invested for reasons unrelated to credit activity, and also noted consistent acceptance of the claim in later assessment years. The interest therefore qualified as business income eligible for deduction under section 80P(2)(a)(i), and the addition under section 56 was not sustained. en-us Fri, 02 Nov 2018 00:00:00 +0530 Fri, 15 May 2026 18:20:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468646 Interest earned by a co-operative credit society on fixed deposits placed with nationalised banks was treated as attributable to its business activity, rather than income from other sources, where the deposits formed part of the society's operational and reserve-fund structure and were permitted under the applicable State co-operative regime. The Tribunal relied on earlier Pune Bench decisions distinguishing such business-linked deposits from surplus funds invested for reasons unrelated to credit activity, and also noted consistent acceptance of the claim in later assessment years. The interest therefore qualified as business income eligible for deduction under section 80P(2)(a)(i), and the addition under section 56 was not sustained. Case-Laws Income Tax Fri, 02 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468646