Interest earned from nationalized banks not allowable as deduction u/s 80P

Gujarat State Co-op Agriculture and Rural Development Bank Ltd Vs ITO (ITAT Ahmedabad)

ITAT Ahmedabad held that deduction under Section 80P of Income Tax Act, 1961 not allowable on interest income earned from the nationalized banks.

Facts- The assessee is a cooperative society engaged in providing credit facilities to its members for agriculture and allied activities and rural development. AO denied the claimed of deduction u/s. 80P(2)(d) of the Income Tax Act on interest income earned from nationalised banks.

CIT(A) confirmed the said disallowance. Being aggrieved, the present appeal is filed.

Conclusion- Held that the impugned interest income had been earned from Nationalised banks and not from other cooperative societies, and therefore, held that the assessee was not eligible for deduction under section 80P(2)(d) of the Act.

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