Relief for Co-op Credit Societies – Totgars Distinguished- Bank Deposit Interest Not Taxable as Other Sources

West Central Railway Employees Co-operative Credit Society Limited Vs ITO (ITAT Jaipur) Relief for Co-op Credit Societies – Totgars Distinguished- Bank Deposit Interest Not Taxable as Other Sources Background Assessee, a credit co-operative society, provides loans to its members. It claimed deduction u/s 80P(2)(a)(i) on entire surplus, including interest earned from bank FDs & deposits with financial institutions. AO disallowed deduction on such interest, treating it as “Income from Other Sources” u/s 56, relying on Totgars’ Co-op Sale Society Ltd. (SC). For AY 2017-18, disallowan...