Interest on mandatory Statutory Deposits Eligible for Deduction U/S 80P: ITAT Bangalore

Nagini Co-operative Credit Society Vs ITO (ITAT Bangalore) ITAT Bangalore held that the interest income received by way of mandatory / statutory deposits would also eligible for deduction u/s. 80P(2)(a)(i) of the Income Tax Act by treating the said income as business income. Accordingly, appeal of the assessee allowed. Facts- The assessee is a co-operative society registered under the provisions of the Karnataka Co-operative Societies Act. Post scrutiny assessment, AO denied the claim of deduction made u/s. 80P(2)(d) of the Act on the interest income earned from the deposits made with the Co-o...