2022 (5) TMI 1179

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.... The assessee has filed this appeal challenging the order dated 28-10- 2019 passed by Ld CIT(A)-6, Bengaluru and it relates to the assessment year 2016-17. The only issue urged by the assessee relates to the denial of deduction u/s 80P(2)(a)(i) of the Act in respect of interest income earned from the deposits held by the assessee. 2. I heard the parties and perused the record. The AO disallowed ....

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.... the requirements of the Karnataka Co-operative Societies Act should be considered as income from business and it is eligible for deduction u/s 80P(2)(a)(i) of the Act. It was further held that the deduction u/s 80P(2)(d) shall be available in respect of interest income received out of investments made with co-operative societies. The Ld A.R submitted that the interest income earned from the inves....

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....come from business, which entails the benefit of deduction u/s 80P(2)(a)(i) of the I T Act. Insofar as deduction u/s 80P(2)(d) of the I T Act is concerned, we make it clear that interest income received out of investments with co-operative societies is to be allowed as deduction." Accordingly, there is merit in the prayer of the assessee. Accordingly, we set aside the order passed by Ld CIT(A) on....