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2019 (5) TMI 1188 - AT - Income TaxEligibility for deduction u/s 80P(2)(a(i) - interest income earned by the assessee from banks and sub-treasuries - HELD THAT:- The assessee had made investments in the course of banking activities and such interest income was received on investments made with co-operative banks and other scheduled banks. The co-ordinate Bench order of the Tribunal in the case of Kizhathadiyoor Service Co-operative Bank Limited [2016 (7) TMI 1405 - ITAT COCHIN] had held that such interest income received should be assessed as `income from business’ instead of `income from other sources’. In view of the coordinate Bench order of the Tribunal, we hold that the CIT(A) is justified in holding that interest income received should be assessed as `income from business’. As regards the grant of deduction u/s 80P of the I.T.Act on such interest income, the Assessing Officer shall follow the law laid down by the Larger Bench of the Hon’ble jurisdictional High Court in the case of The Mavilayi Service Co-operative Bank Ltd. V. CIT [2019 (3) TMI 1580 - KERALA HIGH COURT] and examine the activities of the assessee-society before grant of deduction u/s 80P - Appeal filed by the Revenue is allowed for statistical purposes. .
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