ITAT Chandigarh rules AO correctly allowed deduction u/s 80P for interest income from cooperative bank deposits.

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....The ITAT Chandigarh dealt with a case involving revision u/s 263 on interest income from fixed deposits. The tribunal held that AO correctly allowed deduction u/s 80P, rejecting PCIT's revision. Citing precedents, it affirmed that interest from cooperative banks is eligible for deduction u/s 80P(2)(d). The tribunal ruled in favor of the assessee, setting aside PCIT's revisionary order and reinstating the assessment order. The decision emphasized the eligibility of cooperative societies for exemption under section 80P(2)(d) for interest income from investments in cooperative banks.....