Deduction u/s 80P was allowable on interest earned on surplus lending funds as same was related to Banking business

West Bengal State Co-Operative Agriculture & Rural Development Bank Ltd. Vs DCIT (Calcutta High Court) Conclusion: Where Cooperative Society was engaged in the business of providing credit facilities to its members, they deposited excess amount for short term in banks, interest earned was entitled for deduction under Section 80P(2)(a)(i). Held: Assessee was a cooperative society of the land mortgage bank in the State of West Bengal, funds were received from NABARD during the relevant financial year. The funds were received in two installments and the funds were in turn lent to the members ...