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2017 (10) TMI 1318 - AT - Income TaxExemption under section 80P - assessee is a primary agricultural credit society - reason for denying the claim of deduction was that the assessee was doing the business of banking - whether interest received on investments with subtreasury is liable to be assessed under the head ‘income from other sources’ or ‘income from business’? - Held that:- A primary agricultural credit society or a primary cooperative agricultural and rural development bank who do not have license from Reserve Bank of India to carry on the business of banking, is not a cooperative bank, hit by the provisions of section 80P(4) Following the judgement in case of THE CHIRAKKAL SERVICE CO-OPERATIVE BANK LTD. VERSUS THE COMMISSIONER OF INCOME TAX [2016 (4) TMI 826 - KERALA HIGH COURT] we hold that hold that the assessee is entitled to deduction u/s 80P(2) of the Act for the interest received as investment with sub-treasury - Decided in favor of assessee.
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