Net interest income on deposits with scheduled bank is taxable u/s 56 of Income Tax Act

Advertisement Gnana Shale Souhardha Cooperative Limited Vs PCIT (ITAT Bangalore) ITAT Bangalore held that interest on deposits kept with scheduled banks only the net interest, i.e., the interest income reduced by the administrative expenses and other proportionate expenditure to earn the said income had to be brought to tax u/s 56 of the I.T.Act. Facts- The assessee is a co-operative society, providing credit facilities to its members. For AY 2015-2016, the ROI was filed on 21.09.2015 declaring `Nil’ income after claiming deduction u/s 80P of the I.T.Act. The assessment was completed vide...