Expenses related to interest income allowable under Section 56

Shri Kalyan Co-op Credit Society Ltd. Vs ITO (ITAT Ahmedabad) The assessee filed its return for the financial year under consideration on 25.08.2014 declaring total income at Rs. Nil after claiming deduction under Section 80P of the Income Tax Act, 1961 to the extent of Rs.22,45,102/-. The Assessing Officer observed that the assessee co-op society earns interest on funds which are invested with Banks as well as from its members but claimed deduction under Section 80P of the Act on the income including the entire interest income whereas Section 80P(2)(a)(i) implies that the deduction is availab...