Section 80P(2)(d) Deduction on Cooperative Bank Interest Allowed: Gujarat HC

PCIT Vs Ashwinkumar Arban Co Operative Society Ltd. (Gujarat High Court) The Gujarat High Court considered Revenue appeals challenging the ITAT’s decision quashing revision proceedings initiated under Section 263 of the Income-tax Act, 1961 in relation to deduction claimed under Section 80P(2)(d) on interest earned by cooperative societies from investments made with cooperative banks. The Revenue contended that, in view of Section 80P(4), cooperative banks were excluded from the benefit of Section 80P and, therefore, such interest was not eligible for deduction. The assessees argued that Sec...