Section 80P deduction allowed on interest income of Credit co-op societies from its investment with other bank

Ismailia Urban Co-Op Vs ITO (ITAT Nagpur) Conclusion: Deduction under section 80P was allowable to assessee-credit co-operative society on interest income earned on its investment with other banks as assessee society was maintaining operational funds and to meet any eventuality towards repayment of deposit the cooperative society was maintaining some liquidated funds as short term deposits with banks. Held: Assessee was a credit co-operative society engaged in the business of banking only. It was not carrying out any other activities except the banking business activities. During the relevant...