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2018 (9) TMI 408 - AT - Income TaxEntitled to deduction u/s. 80P(2)(i)(a) - Whether the interest earned on investment made with sub-treasury and Banks is entitled for deduction u/s. 80P(2)(i)(a)? - Held that:- As in the case of Chirakkal Service Co-operative Society [2016 (4) TMI 826 - KERALA HIGH COURT] the assessee is entitled to deduction u/s. 80P(2) of the I.T. Act and directed the Assessing Officer to allow deduction u/s. 80P of the Act. Assessee was entitled to deduction u/s 80P(2)(a)(i) for the interest received on investment made with sub-treasuries and banks - Held that:- Interest earned from investment with sub-treasuries and Banks was part of the banking activities, and therefore, the said income was entitled to deduction u/s 80P(2)(a)(i). Hence, Padne Service Co-operative Bank Limited v. ITO (I2018 (1) TMI 602 - ITAT COCHIN) we hold that the CIT(A) is justified in directing the A.O. to grant deduction u/s 80P(2)(a)(i) of the I.T. Act for the interest earned on the investments made with sub-treasuries and Banks. It is ordered accordingly.
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