Interest from Deposits with Co-operative Banks Qualifies for Section 80P(2)(d): ITAT Allows Deduction in Full

Shirol Taluka Khajagi Vs ITO (ITAT Pune) The Pune Bench (SMC) of the ITAT allowed the assessee’s appeal and held that interest income earned by a co-operative credit society from deposits with co-operative banks is fully eligible for deduction under section 80P(2)(d). The assessee, a registered co-operative credit society providing credit facilities to its members, had earned interest of ₹1,52,829 from deposits placed with various co-operative banks, including the Kolhapur District Central Co-operative Bank and urban co-operative banks. The Assessing Officer treated such interest as income...