Section 80P Deduction Allowed on Bank Interest – ITAT Follows Tumkur Merchants, Distinguishes Totagars

Advertisement Daivagna Credit Co-op Society Limited Vs ITO (ITAT Bangalore) Section 80P Deduction Allowed on Bank Interest – ITAT Follows Tumkur Merchants, Distinguishes Totagars The ITAT Bangalore allowed deduction under Section 80P(2)(a)(i) on interest income earned from bank deposits, holding that such income is business income attributable to the activity of providing credit to members. The assessee, a credit cooperative society, had earned interest of about ₹5.04 lakhs from deposits with cooperative and commercial banks. The Assessing Officer treated this as “Income from Othe...