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2017 (12) TMI 1639 - AT - Income TaxDeduction u/s 80P(2)(d) - interest received by the assessee from co-operative banks - Held that:- There are divergent views on this matter. The Hon’ble Karnataka High Court has expressed the view that the deduction u/s 80P(2)(d) would not be available in respect of interest income received from co-operative bank, whereas the Hon’ble Himachal Pradesh High Court has held that the said deduction would be available. The Hon’ble Supreme Court has held in the case of Vegetable Products Ltd [1973 (1) TMI 1 - SUPREME COURT] that if two reasonable constructions of a taxing provision are possible that construction which favours the assessee must be adopted. By applying the said principle, the view taken in KANGRA CO-OPERATIVE BANK LTD. [2008 (8) TMI 193 - HIMACHAL PRADESH HIGH COURT] which is in favour of the assessee, is required to be adopted in this case. Accordingly hold that the interest income earned by the assessee from Co-operative banks, which are basically co-operative societies carrying on banking business, is deductible u/s 80P(2)(d) - decided in favour of assessee.
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