Interest earned by co-op society from investment with other co-op society deductible u/s 80P(2)(d)

BEE Co-op Credit Society Ltd VS ITO (ITAT Bangalore)

ITAT Bangalore held that section 80P(2)(d) of the Income Tax Act provides deduction to co-operative society from income earned by way of interest/ dividends from its investment with any other co-operative society.

Facts- The assessee is a society and claimed exemption u/s 80P. AO observed that assessee has claimed exemption u/s. 80P(2)(d) being interest income.

AO was of the opinion that it is not the business of the assesee to take deposits from the members and generate surplus out of it and reinvest the same in banks to earn interest thereon. He was thus of the opinion that such activities falls outside the purview of sec. 80P(2)(d) of the Act and, therefore, disallowed the claim of assessee u/s 80P(2)(d) of the Act was disallowed.

CIT(A) upheld the addition. Being aggrieved, the present appeal is preferred by the assessee.

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