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2022 (7) TMI 1379 - AT - Income TaxDeduction u/s.80P(2)(a)(i) - interest income from the Associated Members - HELD THAT:- As per decision of The Principal Commissioner of Income Tax, Salem Vs. M/s.S-1308, Ammapet Primary Agricultural Co-operative Bank Ltd [2019 (1) TMI 116 - MADRAS HIGH COURT] and in the decision of the Hon’ble Supreme Court in the case of Mavilayi Service Co-operative Bank Limited vs. Commissioner of Income Tax, Calicut [2021 (1) TMI 488 - SUPREME COURT] Respectfully following the same, we direct the AO to allow the claim of deduction u/s.80P(2)(a)(i) of the Act on the interest income from the Associated Members. Thus, this issue in the Assessee’s appeal is allowed. Interest as deduction u/s.80P(2)(a)(i) in regard to the interest income earned from deposits made with the Cooperative Bank - whether the interest earned by the Assessee is from the Co-operative Bank which is governed and registered under the Tamilnadu Co-operative Societies Act, 1983 or as to whether it is governed by the Reserve Bank of India holding banking license under the Banking Regulations Act, 1949? - HELD THAT:-This fact is not coming out of the order of the AO or of the CIT (Appeals). Hence, this issue is remanded back to the file of the Assessing Officer who will verify as to whether the Assessee has earned interest from the Co-operative Banks governed by the Reserve Bank of India holding banking license under the Banking Regulations Act, 1949 or as to whether it is governed by the Tamilnadu Co-operative Societies Act, 1983, the Assessing Officer will verify the facts and will decide accordingly. Thus, the appeal of the Assessee is partly allowed as indicated above.
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