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2013 (8) TMI 250 - HC - Income TaxDeduction u/s 80P(2)(d) - Interest Income - deduction in respect of whole of the amount of interest or Net income after allowing th permissible deduction - adjustment of carry forward of losses - Held that:- interest on cash security deposited in another co-operative society cannot be treated as investment - Section 80P(2)(d) of the Act allows whole deduction of an income by way of interest or dividends derived by a co-operative society from its investment with any other co-operative society and this provision does not make any distinction in regard to the source of the investment, because the section envisages deduction in respect of any income derived by the cooperative society from any investment with a co-operative society. It is immaterial whether any interest paid to the co-operative society exceeds the interest received from the bank on investments. The section does not speak of any adjustment as sought to be made out. The provision does not indicate any such adjustment in regard to interest derived from the co-operative society from its investment in any other co-operative society - Following decision of CIT vs. Doaba Co-operative Sugar Mills Ltd. [1997 (4) TMI 49 - PUNJAB AND HARYANA High Court] and CIT vs. Dugdh Utpadak Sahkari Sangh Ltd. [2004 (10) TMI 65 - ALLAHABAD High Court] - Decided in favour of Revenue.
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