Section 80P Deduction denied on Interest income on Bank FD- proportionate cost allowable

Karnataka Judicial Officers Credit Co-operative Society Ltd. Vs ITO (ITAT Bangalore) The next issue relates to the deduction claimed by the assessee u/s.80P(2)(d) of the Act in respect of interest income. Identical issue has been considered by the co-ordinate bench in the case of Karkala Co-op Bank Ltd (supra). For the sake of convenience, we extract below the relevant observations made by the co-ordinate bench:- “7. The next common issue relates to rejection of deduction claimed u/s. 80P(2)(d) of the Act in respect of interest income earned from fixed deposits kept with bank. We noticed...