Interest From Co-op Banks Counts as Business Income: Section 80P Deduction Granted

Nandini Credit Co-operative Society Limited Vs ITO (ITAT Bangalore) Divergent HC Views? Tribunal Chooses One Favorable to Assessee- Interest From Co-op Banks Attributable to Business: 80P(2)(a)(i) Allowed Assessee, a credit co-op society, claimed full deduction u/s 80P(2)(a)(i) on interest earned from deposits with Co-operative Bank & District Central Co-operative Bank. AO treated such interest as “income from other sources” relying on Totgars (Karnataka HC 16.06.2017) & allowed only partial deduction; CIT(A)-NFAC upheld disallowance of ₹8,98,286. Tribunal noted  that Karnataka ...