ITAT: Interest from Co-op Banks Not Same as Co-op Society, Denies 80P(2)(d) Deduction

Bantwal Public Employees Consumers Co-operative Society Vs ITO (ITAT Bangalore) Introduction: In a pivotal decision by the Income Tax Appellate Tribunal (ITAT) Bangalore, the Bantwal Public Employees Consumers Co-operative Society faced a setback as their claim for a deduction under section 80P(2)(d) of the Income Tax Act was dismissed. This ruling, dated 20.09.2023, has significant implications for co-operative societies across the country, particularly those deriving interest income from investments with co-operative banks. Detailed Analysis: The core of the dispute revolved around the socie...