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2015 (2) TMI 281 - ITAT PUNETaxability of the interest and dividend income income earned by the assessee credit Co-operative society - AO declined to allow benefit of deduction u/s. Sec. 80P(2)(a)(i) treating the said interest income as a borrowing part of its business activities - Held that:- There is no ambiguity in the language of Sec. 80P(2)(d). Sindhudurg District Central Co-operative Bank Ltd. is a Co-operative Society though engaged in the business of banking and hence, the assessee is entitled to claim the deduction in respect of the interest earned or received from the Sindhudurg District Central Co-operative Bank Ltd. On the plain reading of the language used in Sec. 80P(2)(d) in our opinion it is an independent deduction other than that of Sec. 80P(2)(a)(i). We, therefore, hold that the interest income earned on the fixed deposit or any other bank account with Sindhudurg District Central Co-operative Bank Ltd. is allowable as a deduction on gross basis u/s. 80P(2)(d) of the Act. - Decided in favour of assessee.
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