Interest on investments of Service Co-operative Banks eligible for deduction u/s 80P(2)(a)(1)

Interest income  on investments of Service Co-operative Banks is business income eligible for deduction u/s 80P(2)(a)(1) and not income from other sources. Brief Facts of the Case The assessee is a cooperative society. The return of income for the AY 2009-10 was filed on 25.3.2010 declaring net income of Rs. ‘Nil”, after claiming deduction u/s 80P(2) of the I T Act. The AO had treated the assessee’s income from investment amounting to Rs. 8,42,219/- as income from other sources.  The assessee had claimed the said income as income from business of banking and was eligible for deduction ...