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2015 (8) TMI 1085 - AT - Income TaxEligibility for deduction u/s.80P(2)(a)(i) - interest earned on deposit kept with schedule banks - assessee (cooperative society) engaged in the activity of providing credit facilities to its member - Held that:- Since in the instant case, two divergent decisions were cited before us and no decision of the Hon’ble jurisdictional High Court is available, therefore, following the decision of the Hon’ble Supreme Court in the case of CIT Vs. Vegetable products reported in [1973 (1) TMI 1 - SUPREME Court] we hold that the view in favour of the assessee, i.e. the decision of the in the case of Tumkur Merchants Souhards Credit Cooperative Ltd. [2015 (2) TMI 995 - KARNATAKA HIGH COURT ] has to be followed. Accordingly, we hold that the interest income earned by the assessee on short term deposits kept with banks has to be allowed as deduction u/s.80P(2)(a)(i) of the I.T. Act. Decision Mantola Cooperative Thrift & Credit Society Ltd. Vs. CIT [2014 (9) TMI 833 - DELHI HIGH COURT] rejected - Decided in favour of assessee.
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