2018 (10) TMI 933

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.... deduction u/s 80P(2)(d) of the I.T.Act on interest received on investments made with Alapuzha District Cooperative Bank Limited ? 3. Brief facts of the case are as follows:- The assessee is a Co-operative Society. It is engaged in the business of manufacturing and sale of homeopathic medicines. For the assessment years 2013-2014 and 2014- 2015, assessments were completed by denying the claim made u/s 80P(2)(d) of the I.T.Act. The reasoning of the Assessing Officer to deny the benefit of deduction u/s 80P(2)(d) of the I.T.Act was that the payer of the amount, viz., Alappuzha District Co-operative Bank Limited is not a cooperative society and interest / dividend paid by the cooperative society alone is entitled to exemption u/s 80P(2)(d) of....

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....nd interest earned from deposits with co-operative bank was also entitled to deduction u/s 80P(2)(d) of the I.T.Act. The learned Departmental Representative, on the other hand, supported the orders passed by the Income-tax authorities. 6. We have heard the rival submissions and perused the material on record. The solitary issue for our consideration is whether the interest income received from Alappuzha District Co-operative Bank Limited assessed as income from other sources was entitled to the benefit of deduction u/s 80P(2)(d) of the I.T.Act ? 6.1 Section 80P(2)(d) of the I.T.Act allows the deduction of interest or dividend derived by a co-operative society from investments made with any other co-operative society. The entire interest i....