Section 80P(2)(a)(i) deduction eligible to Co-operative Society on interest from members

ACIT Vs Visnagar Taluka Majoor Sahakari Mandli Limited (ITAT Ahmedabad) It is pertinent to note that the decision of Hon’ble Apex Court in the case of Totgars Co-operative Sale Society Limited (supra) the issue was related to interest income earned from Nationalised Bank which is taxed under the income from other sources. But in case of co-operative credit societies/cooperative banks which has different setup altogether where deduction under Section 80P(2)(a)(i) of the Act is allowable when the interest is derived from credit provided to its members. The same cannot be equated with Nationali...