Statutory SLR Deposits Save 80P Deduction – ITAT Bangalore Draws Clear Line Between Mandatory Funds & Idle Surplus!

Shanteshwar VividoddeshagalaSahakara Sangha Vs ITO (ITAT Bangalore) Statutory SLR Deposits Save 80P Deduction – ITAT Bangalore Draws Clear Line Between Mandatory Funds & Idle Surplus! The Bangalore ITAT held that a co-operative credit society is entitled to deduction u/s 80P(2)(a)(i) on interest earned from deposits maintained under the statutory requirements of the Karnataka Co-operative Societies Act, 1959. The Tribunal observed that where deposits are compulsorily maintained as SLR/fluid resources, the interest earned therefrom is “attributable to” the business of providing cr...