Allowability of deduction u/s 80P(2)(d) for interest income from ...

Cooperative Society Wins Tax Deduction for Interest Income from Deposits in Cooperative Bank, ITAT Rules Favorably.

September 4, 2024

Case Laws Income Tax AT

Allowability of deduction u/s 80P(2)(d) for interest income from deposits/investments in a cooperative bank by a cooperative society. The assessee, a cooperative society registered in Rajasthan, claimed deduction on interest received from another cooperative society operating as a cooperative bank. The ITAT held that the assessee is entitled to the deduction, relying on Section 22 of the Regional Rural Bank Act, 1976, which deems Regional Rural Banks as cooperative societies for income tax purposes. Despite a CBDT circular restricting deduction for Regional Rural Banks, the ITAT ruled that it cannot override the statutory provision. As the assessee is a cooperative society and not a Regional Rural Bank, it is eligible for deduction on interest earned from deposits in the cooperative bank u/s 80P(2)(d).

View Source

← Previous Next →

Allowability of deduction u/s 80P(2)(d) for interest income from ...

Cooperative Society Wins Tax Deduction for Interest Income from Deposits in Cooperative Bank, ITAT Rules Favorably.

September 4, 2024

Case Laws Income Tax AT

You may also like:

Deductibility of interest income from investments u/s 80P(2)(a)(i) of the Income Tax Act for a primary agricultural credit cooperative society. The key points are: The...

Interest income earned by a cooperative society from deposits made with another cooperative bank is eligible for deduction u/s 80P(2)(d) of the Income Tax Act. The...

Deduction u/s 80P(2)(d) - Interest income earned by the Society comes with the category of income from other sources and Section 80P(2)(d) deals with the eligible...

Interest income earned by a co-operative society formed and managed by the Government, in its regular course of operations, forms part of revenue attributable to...

Deduction u/s 80P - deduction of income earned as interest/dividend from co-operative bank is allowable. Section 80P(2)(d) reflects that if income by way of interest or...

Co-operative Housing Society declared income from maintenance charges under 'Income from other sources' with deficit of Rs. 13,86,671/-. Rental and interest income also...

Deduction u/s 80P - interest income - The tribunal noted that section 80P(2)(a)(i) allows deduction for cooperative societies engaged in banking or providing credit...

Denial of deduction claimed u/s 80P (2)(d) - AO disallowed the benefit by invoking the provision of section 154 for rectification of mistake change of opinion - interest...

The High Court upheld the Tribunal's decision allowing deduction u/s 80P(2)(d) of the Income Tax Act to the assessee, a cooperative society, on the interest income...

The ITAT Chandigarh dealt with a case involving revision u/s 263 on interest income from fixed deposits. The tribunal held that AO correctly allowed deduction u/s 80P,...

Revision u/s 263 - Deduction u/s 80P(2)(a)(i) - interest income was received by the assessee on deposits - section 80P(2)(d) of the Act specifically exempts interest...

Disallowance of deduction(s) u/s 80P - interest income from the investments made in co-operative/other bank(s) - The tribunal analyzed Sec. 80P(2)(d) and determined that...

Income earned by a housing cooperative society from interest on fixed deposits and rental income is eligible for set-off against maintenance expenses. The interest...

Deduction claimed u/s. 80P(2)(a)(i) - Status showing as AOP and not mentioned as cooperative society - The Tribunal referred to the definition of "person" under section...

Deduction u/s 80P(2)(a)(i) was denied by the Assessing Officer on grounds that the assessee society cannot be termed a mutual concern and principles of mutuality cannot...

Quick Updates: