Cost of funds for earning interest income, assessed under section 56 is allowable

Deepa Credit Co-operative Society Ltd. Vs ITO (ITAT Bangalore) Introduction: The recent appeal at ITAT Bangalore, Deepa Credit Co-operative Society Ltd. vs ITO, revolves around the Assessment Year 2017-18. The case delves into the intricacies of interest income and the associated deduction claims made by the cooperative society. The appeal challenges the CIT(A)’s order dated 16.08.2023, passed under Section 250 of the Income Tax Act, 1961. Detailed Analysis: 1. Background and Assessment: Deepa Credit Co-operative Society, registered under the Karnataka Co-operative Societies Act, filed i...