Interest earned by co-operative society from fixed deposit with banks is eligible for deduction u/s. 80P(2)(a)(i)

Jalsampda Karmchari Sahakari Patsanstha Maryadit Wardha Vs ITO (ITAT Nagpur) ITAT Nagpur held that deduction under section 80P(2)(a)(i) of the Income Tax Act admissible in case of interest earned from fixed deposit with bank. Accordingly, deduction claimed by the assessee is allowed by deleting the addition. Facts- The Assessee is a cooperative society engaged in accepting deposits and providing credit facilities to its members, consisting of only employees of Irrigation department of Maharashtra State in Wardha District. AO observed that the Assessee has made the investment including fixed de...