Section 80P(2)(d) Allowed; Interest from Co-op Banks Fully Deductible

Karad Urban Sevak Vs ITO (ITAT Pune) The ITAT, Pune (SMC) held that interest income earned by a co-operative society from deposits with Co-operative Banks qualifies for deduction u/s 80P(2)(d). In this case, the AO disallowed ₹39.69 lakh being interest from deposits with Satara District Central Co-op Bank Ltd. and Karad Urban Co-op Bank Ltd., which was upheld by NFAC. The Tribunal reiterated the settled position that Co-operative Banks are essentially Co-operative Societies, and therefore interest derived from investments with them falls squarely within s.80P(2)(d). Relying on a catena of P...