The assessee claimed deduction u/s 80P(2)(d) of the Income Tax ...

Cooperative Bank Eligible for Interest Income Tax Deduction unless Operating as Commercial Bank /s80P.

Case Laws Income Tax

October 7, 2024

The assessee claimed deduction u/s 80P(2)(d) of the Income Tax Act for interest income earned on deposits with a Cooperative Bank. The Assessing Officer and CIT(A) disallowed the deduction, contending that the Cooperative Bank does not qualify as a 'Cooperative Society'. However, the Tribunal observed that the Supreme Court in The Mavilayi Service Co-op. Bank Ltd. case has categorically ruled that Cooperative Banks are eligible for deduction u/s 80P(2)(d), unless they hold an RBI license and operate as commercial banks. Since the lower authorities did not examine the eligibility criteria as per the Supreme Court's decision, and the Tribunal had granted the deduction in earlier years without any change in facts, the Tribunal directed the Assessing Officer to allow the deduction claimed by the assessee u/s 80P(2)(d) in light of the Supreme Court's ruling.

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The assessee claimed deduction u/s 80P(2)(d) of the Income Tax ...

Cooperative Bank Eligible for Interest Income Tax Deduction unless Operating as Commercial Bank /s80P.

Case Laws Income Tax

October 7, 2024

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