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2019 (2) TMI 807 - AT - Income TaxClaiming deduction u/s 80P(2)(a)(i) - assessee is a co-operative credit society extending credit facility to its members - interest income received by the assessee by depositing the surplus funds collected from the members - Held that:- The assessee while carrying its activities i.e. extending credit facilities to its members, collected the deposits which are not immediately necessary to extend the credit facilities to its members, deposit in the bank and interest received. We find that there is proximity between the business carried by the assessee and the interest received. Respectfully following the decision in the case of Andhra Pradesh State Co-op Bank Ltd. (2017 (4) TMI 663 - ANDHRA PRADESH HIGH COURT) and also by following the decision of the coordinate bench of the tribunal in the case of M/s. Kakinada Co-op Building Society Ltd. (2016 (3) TMI 14 - ITAT VISAKHAPATNAM), we hold that the interest income received by the assessee by depositing the surplus funds collected from the members is eligible for deduction under section 80P(2)(a)(i) of the Act. - Decided in favour of assessee.
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