Interest on Bank Deposits Allowed as 80P Deduction Due to Business Nexus

Thermal Engineers Co-Op Credit Society Vs ITO (ITAT Pune) Interest on Bank Deposits Attributable to Credit Business Eligible for Section 80P — ITAT Pune Allows Deduction The Pune SMC Bench of the ITAT allowed the appeal of Thermal Engineers Co-operative Credit Society for AY 2018-19, holding that interest income of ₹43.10 lakh earned from fixed deposits with Bank of Maharashtra is eligible for deduction under section 80P(2)(a)(i). Key takeaways from the ruling: Undisputed nature of assessee: The assessee is a credit co-operative society whose principal business is providing credit facilit...