Interest earned by co-operative society out of investment with co-operative bank is deductible u/s 80P(2)(d)

Jal Ratan Deep Co-operative Housing Society Ltd Vs ITO (ITAT Mumbai)

ITAT Mumbai held that interest income earned by co-operative society on its investment held with the co-operative bank would be eligible for claim of deduction under section 80P(2)(d) of the Income Tax Act.

Facts-

The Appellant, M/s Jal Ratan Deep Co-operative Housing Society Ltd by filing the present appeal, sought to set aside the impugned orders passed by National Faceless Appeal Centre(NFAC), Delhi [ ‘CIT(A)’] qua the assessment orders.

The main issue is AO proceeded to disallow the claim of deduction u/s 80P(2)(d) of the Income Tax Act in respect of the interest income earned on investment in fixed deposit with co-operative bank, namely, SVC Co­operative Bank Ltd and thereby framed the assessment under section 143(3) read with section 147 of the Act.

Please become a Premium member. If you are already a Premium member, login here to access the full content.