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2022 (10) TMI 280 - ITAT SURATDeduction u/s 80P(2)(a)(i) for interest earned from the Nationalized (SBI) Bank - HELD THAT:- We note that before us, Ld. Counsel submitted bye-laws of the assessee-society which is placed at Pg-20 of the paper book, wherein the English translation from Guajarati language of sub-clause of above Credit Society is placed at Pg-20 of the paper book, wherein it is mentioned that assessee is a credit society and as per clause-6, the assessee can make investment of its surplus. Thus, it is evidently clear that assessee-society is engaged in facilities to its members and the assessee-society deposits excess amount for short term in a Nationalized Bank as per section 71 of the Gujarat Co-operate Society Act, 1962. Therefore, the assessee-society claims deduction u/s 80P(2)(a)(i) of the Act. We note that assessee’s claim is covered by the order of Mahidharpura Urban Co-Op Credit Society Ltd. [2016 (4) TMI 1001 - ITAT AHMEDABAD] as held amount which was invested in banks to earn interest was not an amount due to any members. It was not the liability. It was not shown as liability in their account. In fact this amount which is in the nature of profits and gains, was not immediately required by the assessee for lending money to its members, as there were no takers. Therefore they had deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P(1) - Decided in favour of assessee.
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