https://www.taxtmi.com/caselaws?id=795822 Interest earned by a co-operative society on funds statutorily required to be deposited with co-operative banks qualifies for deduction under section 80P(2)(d) of the Income-tax Act, 1961. Section 58 of the Karnataka Co-operative Societies Act, 1959 required placement of funds with a co-operative bank or scheduled bank, and the resulting interest was treated as business income. Decisions classifying interest on retained sale proceeds as income from other sources are distinguishable because these deposits arise from a statutory obligation. Jurisdictional High Court decisions, including one concerning the same assessee, support the deduction for interest from deposits with co-operative banks. en-us Wed, 22 Jul 2026 00:00:00 +0530 Tue, 28 Jul 2026 08:30:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795822 Interest earned by a co-operative society on funds statutorily required to be deposited with co-operative banks qualifies for deduction under section 80P(2)(d) of the Income-tax Act, 1961. Section 58 of the Karnataka Co-operative Societies Act, 1959 required placement of funds with a co-operative bank or scheduled bank, and the resulting interest was treated as business income. Decisions classifying interest on retained sale proceeds as income from other sources are distinguishable because these deposits arise from a statutory obligation. Jurisdictional High Court decisions, including one concerning the same assessee, support the deduction for interest from deposits with co-operative banks. Case-Laws Income Tax Wed, 22 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795822