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2018 (6) TMI 883 - AT - Income TaxDisallowance of deduction u/s 80P - interest received on deposits with Sub Treasury - Held that:- Assessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act 1969 - following the judgement of THE KIZHATHADIYOOR SERVICE COOP BANK LTD. VERSUS THE INCOME TAX OFFICER WARD 2 KOTTAYAM [2016 (7) TMI 1405 - ITAT COCHIN] it is held that the investment in treasury/banks and earning interest on the same is part of the banking activity of the assessee’s cooperative bank. Therefore, the said income is eligible for deduction u/s 80P(2)(a)(i) - hence we are of the view that the assessee is entitled to the benefit of deduction u/s 80P(2) with regard to interest received on deposits made by the assessee with sub treasury.- Decided in favour of assessee.
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