Deduction u/s 80P was allowable on interest and dividend income earned from Cooperative Banks

Gandhinagar District Co-op. Milk Producers Union Ltd Vs ACIT (ITAT Ahmedabad) Conclusion: Since cooperative banks were considered cooperative societies for the purpose of Section 80P(2)(d), thereby making assessee’s interest and dividend income eligible for deduction. Such income fostered cooperative financial activity and should qualify for tax relief, contradicting AO’s decision to exclude cooperative banks from the definition of “co-operative society.” Held: Assessee was a co-operative society, registered under Gujarat Co- operative Societies Act, 1961, engaged in the collection of...