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2018 (9) TMI 284 - AT - Income TaxDeduction u/ s 80P(2)(a)(i) - interest income received by the assessee on investments made with Sub -Treasuries, Banks etc. - whether interest income received by the assessee on investments with sub -treasuries and banks was liable to be assessed under the head “income from ot her sources” or “income from business” - Held that:- Co-operative societies engaged in providing credit facilities to its members had in course of business made investments with treasury, bank etc. and earned interest income, such income was eligible for deduction u/ s 80P(2)(a) (i). See Vaveru Co -operative Rural Bank Ltd. v CIT [2017 (4) TMI 663 - ANDHRA PRADESH HIGH COURT] In the instant case the assessee had made investments with sub -treasuries and banks in the course of its business of banking / providing credit facilities to its members. Therefore, it was entitled to deduction u/ s 80P(2)(a)(i) in respect of interest income that was received on such investments in view of the above judicial pronouncements. - Decided in favour of assessee.
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