Co-op Society Eligible for Section 80P(2)(a)(i) Deduction on Interest from Statutory Reserves

CIT Vs Paschim Banga Gramin Bank (Calcutta High Court) Introduction: In a significant ruling, the Calcutta High Court addressed the matter of co-operative societies and their eligibility for Section 80P(2)(a)(i) deduction concerning interest earned from funds utilized for statutory reserves. This case, titled “CIT Vs Paschim Banga Gramin Bank,” sheds light on an essential aspect of taxation for co-operative banks and societies in India. Background: The case revolves around the interpretation of Section 80P(2)(a)(i) of the Income Tax Act, 1961. This section deals with deductions ava...