Co-Op Credit Society can claim Section 80P deduction on interest income from nationalized banks

ITO Vs. The Electro Urban Co-op. Credit Society Ltd. (ITAT Kolkata)

We note that the issue before us is against the order of Ld. CIT(A) in holding that the interest income from nationalised banks was income from business and was eligible for deduction u/s. 80-P of the Act. We note that the issue is squarely covered in favour of the assessee by the decision of Hon’ble jurisdictional High Court at Calcutta in the case of SE, SEC & E.Co. Railways Employees’ Cooperative Credit Society (supra) and also the Third Member decision in assessee’s own case in ITA Nos. 1168 & 1169/Cal/1994, ITA No. 746/Cal/1995 & ITA No. 816/Cal/1996 for AYs. 1989-90 to 1992-93 dated 26.09.2000.

Full Text of the ITAT Order is as follows:-

This is an appeal filed by the revenue against the order of Ld. CIT(A)-10, Kolkata dated 10.11.2015 for AY 2012-13.

2. At the time of hearing, Ld. AR for the assessee submitted an application praying for adjournment of the appeal. After hearing the submission of the Ld. AR and also considering the adjournment application, we reject the adjournment application and the appeal is taken up for hearing.

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