Interest Income from District Co-operative Bank Qualifies for Section 80P Deduction: ITAT Cochin

Nallepilly Service Co-op. Bank Ltd. Vs ITO (ITAT Cochin) In a significant ruling for cooperative banks, the Income Tax Appellate Tribunal (ITAT) in Cochin has quashed a tax demand against the Nallepilly Service Co-operative Bank Ltd., affirming that a primary agricultural credit society is entitled to a tax deduction on interest income earned from a District Co-operative Bank and the Treasury. The decision centered on the interpretation of Section 80P of the Income Tax Act, 1961, which provides for deductions for co-operative societies. The case originated from the Assessment Year (AY) 2020-21...