Deduction u/s. 80P(2)(a)(i) allowable on income earned for providing credit facilities to members: ITAT Bangalore

Nava Karnataka Souhard Credit Co-operative Limited Vs ITO (ITAT Bangalore) ITAT Bangalore held that the co-operative societies providing credit facilities to its members is entitled to deduction u/s 80P(2)(a)(i) of the Income Tax Act. Thus, income earned on account of providing credit facilities is allowable as deduction u/s. 80P(2)(a)(i). Facts- The assessee society, Nava Karnataka Souhard Credit Co-operative Limited being a credit co­operative society registered under Karnataka Souhardha Sahakari Act, 1997. AO relying on the decision of Hon’ble Apex Court in the case of Citizen Co-operati...