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2023 (6) TMI 1316 - AT - Income TaxDenial of deduction u/s.80P - interest income earned from the deposits with other cooperative banks - HELD THAT:- As seen that the assessee is a co-operative society and earned interest income from the deposits with other Co-operative Banks. The extant issue is no more res integra in view of the catena of decisions delivered including the Rena Sahakari Sakhar Karkhana Ltd.[2022 (1) TMI 419 - ITAT PUNE] holding that though co-operative banks, other than primary agricultural credit society or a primary co-operative agricultural and rural development bank, are not eligible for deduction pursuant to insertion of section 80P(4) w.e.f. 1.4.2007, but this provision does not dent the otherwise eligibility u/s 80P(2)(d) of the Act of a co-operative society on interest income on investments/deposits parked with a cooperative bank, which is a registered co-operative society as per section 2(19) of the Act, defining co-operative society to mean a cooperative society registered under the Co-operative Societies Act, 1912 or under any law for the time being in force. The payer of interest is also a Co-operative society registered under the Cooperative Societies Act. We overturn the impugned order and direct to grant deduction u/s.80P(2)(d) of the Act on the amount of interest earned from various cooperative banks. Assessee appeal is allowed.
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