Examining the Eligibility of Credit Co-operative Societies for Deduction on Interest from Co-operative Bank Deposits

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....253 - ITAT AHMEDABAD INTRODUCTION This article examines the legal issues surrounding the deductibility of interest income earned by credit co-operative societies from deposits made with co-operative banks u/s 80P(2)(d) of the Income-tax Act, 1961. The core legal question presented is whether such interest income qualifies for deduction under the said provision, and if so, under what conditions. ....

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....rts and tribunals on this issue. It examines the reasoning process adopted by the Hon'ble Gujarat High Court in cases like Surat Vankar Sahakari Sangh Ltd. v. ACIT and State Bank of India v. CIT, where the court held that interest income earned by co-operative societies from deposits with co-operative banks would be eligible for deduction u/s 80P(2)(d). The article also discusses the decision....

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.... deposits made with co-operative banks should be eligible for deduction u/s 80P(2)(d) of the Income-tax Act, 1961. The article highlights the legal principles established or applied in these cases, such as the interpretation of the term "co-operative bank" u/s 80P(2)(d) and the nexus required between the interest income and the primary business activities of the co-operative society. T....