Interest earned by credit Societies on deposit with Banks eligible for sec 80P(2)(a)(i) deduction

ITO Vs Utkranti Nagri Sahakari Pat Sanstha (ITAT Nagpur) Assessee society is maintaining operational funds and to meet any eventuality towards repayment of deposit the cooperative society is maintaining some liquidated funds as short term deposits with banks. Hence adhering to the doctrin stair desises, we hold that the assessee should be granted benefit of deduction under section 80P(2)(a)(i). Accordingly, the interest on deposits would qualify for deduction under the said section. Surplus funds not immediately required for day to day banking were kept in Bank deposits. The income earned ther...