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2017 (3) TMI 260 - AT - Income TaxAdditions made u/s. 80P(2)(a)(i) - Held that:- As per sec. 2(19) of the Act, a co-operative society means a co-operative society registered under the co-operative societies Act 1912 or under any law for the time being in force in any state for the registration of co-operative societies. The provisions of the IT Act 1961 either in sec. 2(19) or u/ s. 80P do not make any discrimination between the co-operative societies carrying on banking business and other co-operative societies. Co-operative banks are primarily co-operative societies by constitution and "banks" by the nature of business. In the case of Menasi Seemeya Group Gramagala Seva Sahakari Sangha Niyamita [2015 (2) TMI 1094 - ITAT BANGALORE ] it was held that the restrictive interpretation given to co-operative society u/ s. 80P(2) (d) was ·not warranted. The ITAT B'lore Bench in this case through a detailed reasoning came to conclusion that the interest and dividend earned by the appellant from co-operative bank was eligible for deduction u/ s. 80P(2) (d) of the Act. Thus held that the interest income earned on deposits made with other co-operative banks/society are fully deductible u/s. 80P(2)(a)(i) from the income liable to tax though the assessee has claimed the same as exempt u/ s. 80P(2) (d) and the same is also exempt u/ s. 80P(2)(d) as stated above. - Decided in favour of assessee
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