Section 80P Deduction Eligible on NSC & Govt-Directed FD Interest

Katwa-Kalna Co-Operative Agriculture Vs ITO (ITAT Kolkata) The Katwa-Kalna Co-Operative Agriculture society appealed against a previous decision disallowing a tax deduction under Section 80P(2)(a)(i) on the grounds that its interest income from fixed deposits was taxable under ‘income from other sources’ rather than derived from business activities. The co-operative society argued that these deposits were made to comply with the West Bengal Cooperative Societies Act provisions, making the interest income a part of their business income and eligible for deduction. Upon hearing the a...