ITAT Upholds U/s 80P(2)(d) Deduction on Deposits with Co-operative Banks

Laxmi Jyot Industrial Premises Co-op Society Limited Vs ACIT (ITAT Mumbai) Assessee, a co-operative premises society, claimed deduction u/s 80P(2)(d) in respect of interest income of Rs.30.55 lakh earned on deposits placed with various co-operative banks. AO denied the claim holding that interest from co-operative banks is not eligible for deduction u/s 80P(2)(d). CIT(A) confirmed the disallowance. ITAT reversed the lower authorities. Tribunal held that section 80P(2)(d) requires only two conditions — income should be by way of interest or dividend & it should be derived by a co-operativ...