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2018 (4) TMI 505 - AT - Income TaxDeduction u/s. 80P(2)(a) eligibility - assessee is a Credit Co-operative Society and earned interest income earned by the assessee by way of interest or dividend derived from its investments with other Co-operative Banks - Held that:- Coming to the case of assessee which is governed by sub-section 2(a) i.e. Co-operative Societies engaged in carrying on of business of banking or providing credit facilities to its members, etc. under section 80P of the Act. The investments made by the assessee with Co-operative Banks is compulsory because of dictate of the Maharashtra Co-operative Societies Act. Under the said Act, all the Credit Co-operative Societies operating in the State of Maharashtra have necessarily to deposit about 20% to 30% of its funds with Co-operative Banks / Nationalized Banks. See ITO Vs. M/s. Kundalika Nagari Sahakari Patsanstha Maryadit [ 2016 (2) TMI 879 - ITAT PUNE] The assessee is entitled to claim the deduction under section 80P(2)(a)(i) of the Act on the interest income earned from Co-operative Banks. The grounds of appeal raised by the Revenue are thus, dismissed.
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