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.

View Source

← Previous Next →

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

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...

Cooperative Banks, Renting income is eligible for deduction u/s 80P

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...

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...

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...

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...

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...

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,...

Deduction claimed u/sec. 80P(2)(a)(i) - interest income from the investments made in co-operative/scheduled bank(s) - The Tribunal observed that despite the insertion of...

Eligibility of Deduction u/s 80P - bank interest earned from cooperative banks - The Appellate Tribunal found that even if the interest income is not considered as...

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...

Co-operative bank registered under state Act, main objective providing credit facility to members who are employees, funds contributed by members given as loans on...

Deduction u/s 80P(2)(d) was denied through intimation u/s 143(1) on interest income earned by the assessee from cooperative banks. The Tribunal held that neither the...

Deduction u/s 80(P)(2)(d) - Interest income earned on investment in Fixed Deposit with a cooperative bank. - The Hon’ble Apex Court categorically stated that the...

Quick Updates: