80P Relief Largely Allowed – Interest on Investments Held Eligible, Staff Loan Interest Taxable

Karnataka State Cooperative Agriculture and Rural Development Bank Vs ITO (ITAT Bangalore) The assessee, a state-level co-operative credit society, claimed deduction under Section 80P(2)(a)(i) on various income streams including interest on investments, advances, and other receipts. The AO and CIT(A) restricted deduction, treating a portion (₹3.16 crore) as income from other sources. The ITAT Bangalore, after detailed analysis of the assessee’s functioning (as elaborated from page 14 onwards), held that interest on investments (₹16.59 crore)—including statutory and surplus fund deposit...