https://www.taxtmi.com/caselaws?id=794322 Interest earned by a co-operative society from deposits of idle funds and statutory reserves with co-operative banks was held eligible for deduction under section 80P(2)(a)(i) because the funds were surplus amounts not immediately required for lending, and not liabilities payable to members. The decision in Totgars was treated as inapplicable since it concerned retained sale proceeds belonging to members with a corresponding liability. Following the jurisdictional High Court, the interest was treated as attributable to the society's business and not assessable merely as income from other sources. Deduction under section 80P(2)(a)(i) was therefore allowed. en-us Tue, 30 Jun 2026 00:00:00 +0530 Fri, 03 Jul 2026 08:49:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794322 Interest earned by a co-operative society from deposits of idle funds and statutory reserves with co-operative banks was held eligible for deduction under section 80P(2)(a)(i) because the funds were surplus amounts not immediately required for lending, and not liabilities payable to members. The decision in Totgars was treated as inapplicable since it concerned retained sale proceeds belonging to members with a corresponding liability. Following the jurisdictional High Court, the interest was treated as attributable to the society's business and not assessable merely as income from other sources. Deduction under section 80P(2)(a)(i) was therefore allowed. Case-Laws Income Tax Tue, 30 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794322