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TMI Blog1982 (3) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... the AAC dated 15-1-1981 relating to the assessment year 1974-75. The issue that has come up before us for consideration is, whether the assessee, which is a co-operative society and had invested funds in a savings bank account with another co-operative society, is entitled to deduction in respect of income by way of interest earned on such funds under section 80P(2)(d) of the Income-tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 80P(2)(d). This has been confirmed by the AAC. 4. We have heard the parties and we are inclined to accept the claim of the assessee for the following reasons. 5. The fact that the assessee as well as the bank with which the deposits were placed are co-operative societies is not controverted. Insofar as the meaning of the word 'investment' is concerned, we do not have any help from the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trictions on withdrawals. For example, rule 6 of the Savings Bank Rule regarding deposits, stipulates that a depositor may withdraw money from his account not more than 12 times a month. The very name of the account is savings account and, therefore, by implication it is for the purpose of earning interest on savings. In our opinion, the narrow interpretation given by the authorities below to deny ..... X X X X Extracts X X X X X X X X Extracts X X X X
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