Bank Interest Held Eligible for 80P Relief Due to Absence of Jurisdictional HC Ruling

Secretary Co-operative Cane Development Union Ltd Vs ITO (ITAT Delhi) The appeals concern the denial of Section 80P deduction for interest earned from surplus deposits placed in scheduled and nationalized banks for AYs 2017-18 and 2020-21. The lower authorities treated the interest of Rs. 89,88,343 and Rs. 1,79,10,356 as income from other sources, holding it was not “derived” from eligible business activity under Section 80P(2). The Revenue relied on a Gujarat High Court ruling supporting this view, while the assessee cited an Andhra Pradesh High Court decision rejecting such treatment. As...