Section 80P(2)(d) Deduction Ineligibility for Co-op Societies on Interest Income from Investments with Co-Op Bank

PCIT Vs Totagars Co-Operative Sale Society (Karnataka High Court)

Section 80P(2)(d) deduction not eligible to co-operative societies on interest income earned from investments with another co-operative bank

The Karnataka High Court’s ruling in the case of PCIT Vs Totagars Co-Operative Sale Society centers on whether a cooperative society can claim a deduction under Section 80P(2)(d) of the Income Tax Act for interest income earned from investments with another cooperative bank. Here is a detailed summary of the case and the court’s findings:

Background

The respondent, Totagars Co-Operative Sale Society, is a cooperative society primarily involved in the marketing of agricultural produce grown by its members. It also accepts deposits from its members and provides various services like credit facilities, running stores, rice mills, medical shops, and more.

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