2025 (11) TMI 1395

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....ce of the assessee is that ld.CIT(A) has erred in not allowing the claim of deduction u/s.80P(2)(d) of the Act at Rs. 9,11,820/-. 3. At the outset, Ld. Counsel for the assessee submitted that this Tribunal has been consistently holding in plethora of decisions that interest earned from investments held with Cooperative banks/Cooperative Societies is eligible for deduction u/s.80P(2)(d) of the Act. He fairly admitted that in the claim of assessee deduction u/s.80P(2)(d) of the Act at Rs. 9,11,820/- also includes the interest received from Yes Bank at Rs. 1,02,121/- which is not eligible for deduction. However, for the remaining amount of Rs. 8,08,698/- the same has been earned from investments with Cooperative banks/Cooperative Societies.....

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....s are basically Cooperative Societies. For the sake of brevity, the finding given in ITA No.2471/PUN/2024 is reproduced below: "7. We have heard both the sides and perused the record placed before us. In the instant case, the Assessing Officer disallowed the interest income of Rs. 1,63,98,998/- earned out of the Fixed deposits/Investments made with Cooperative Banks treating the same as Income from Other Source. Ld.CIT(A) dismissed the appeal in limine without discussing anything on merits of the issues and on the ground that the assessee has not provided plausible explanation for admission of additional evidences. 8. Section 80P(2)(d) of the Act provides that the sum received in respect of any income by way of interest or....

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....ted to allow the claim made by the assessee. Effective grounds of appeal raised by the assessee are allowed." 6. Respectfully following the same, we hold that deduction of Rs. 1,02,95,103/- u/s.80P(2)(d) of the Act claimed by the assessee on the interest earned from deposits/Investments with Cooperative Banks deserves to be allowed. Relevant finding of ld.CIT(A) on merits is set aside and grounds of appeal No.5 to 8 raised by the assessee are allowed." 6. Considering the above decisions and the consistent view taken by this Tribunal, I hold that the interest income earned from deposits/Investments with Cooperative Bank is eligible for deduction u/s.80P(2)(d) of the Act. However, the details in support of the said same were not p....