80P(2)(a)(i) Deduction on Bank Interest Upheld – Totgars Distinguished: ITAT Chennai

ITO Vs Railway Employees Co-operative Credit Society Limited (ITAT Chennai) 80P(2)(a)(i) deduction on bank interest upheld – Totgars distinguished; Revenue appeals dismissed – ITAT Chennai In ITO vs Railway Employees Co-operative Credit Society Ltd. (A.Ys. 2017-18 & 2018-19), the AO denied deduction u/s 80P(2)(a)(i) on interest income of ₹6.72 crore earned from deposits with co-operative and commercial banks, treating it as “Income from Other Sources”. The CIT(A) allowed the claim following earlier Tribunal orders in assessee’s own case. The ITAT noted that the issue was alread...