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2023 (6) TMI 1026 - ITAT JAIPUR
Deduction u/s 80P(2)(a)(i) - net profit earned by the assessee from carrying on business as Co-operative Society - HELD THAT:- As in the case of the assessee before us the surplus funds parked by way of short-term deposit with the co-operative bank, viz. Malavia Urban Co-operative Bank Limited are inextricably interlinked, or in fact interwoven with its business of providing credit facilities to its members, therefore, the same as claimed by the Ld. AR, and rightly so, would duly be eligible for deduction u/s.80P(2)(a)(i).
We, thus, in terms of our aforesaid observations, direct the AO to allow deduction u/s. 80P(2)(a)(i) of the Act on the interest income earned by the assessee society on its deposits with the co-operative bank - Appeal of assessee allowed.