2025 (3) TMI 1807

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....it of deduction claimed u/s 80P of the Income Tax Act, 1961 (in short "The Act") for Rs. 14,84,672/- representing the interest income from the Co-operative bank/nationalized bank. 3. Briefly stated facts are that the assessee in the present case is a Co-operative Society and engaged in the activity of providing financial facilities to its members. The assessee filed its return of income declaring income of Rs. Nil after claiming the deduction u/s 80P of the Act for Rs. 31,75,664/- only. The AO during the assessment proceedings found that the assessee has also claimed deduction u/s 80P of the Act to the tune of Rs. 14,84,672/- representing the gross amount of interest from the Cooperative/ nationalized bank. As per the AO, such interest i....

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....or the purpose of deduction u/s 80P of the Act. However, the ld. D.R. fairly agreed for the benefit of deduction u/s 57 of the Act which can be granted to the assessee upon furnishing the necessary details against the income from cooperative banks/ Axis bank. 7. I have heard the rival contentions of both the parties and perused the materials available on record. As regards the compulsory deposit with the Co-operative bank, in my considered view, the issue is squarely covered in favour of the assessee by the judgement of Hon'ble Supreme Court in the case of CIT versus Karnataka State cooperative apex bank reported in 251 ITR 194 wherein it was held as under: There is no doubt, and it is not disputed, that the assessee-co-operativ....