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2018 (9) TMI 345 - AT - Income TaxEntitled to deduction u/s 80P(2) - Whether the interest income received from investments with co-operative banks is entitled to deduction u/s 80P(2)(a)(i)? - Held that:- Assessee to entitled to deduction u/s 80P(2) of the I. T. Act, the Cochin Bench of the Tribunal in the case of ITO v. The Chengala Service Co-operative Bank Ltd. [2018 (4) TMI 339 - ITAT COCHIN] after elaborately considering all the judicial pronouncements had decided the issue in favour of the assessee. Interest received on investments with cooperative Banks - Held that:- In the instant cases, it is not clear that the interest income was received out of investments made with co-operative societies. Therefore, we are of the view that deduction u/s 80P(2)(d) of the I. T. Act cannot be granted. Further, we find that the investments are made by the assessee-societies in the course of its banking business / providing credit facilities to its members and hence such income will form part of banking activities of the assessee and same is entitled to deduction u/s 80P(2)(a)(i). We are of the view that the assessee are entitled to deduction u/s 80P(2)(a)(i) in respect of interest income received on investments made with co-operative Banks. - Decided against revenue.
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