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2022 (6) TMI 816 - AT - Income TaxDeduction u/s 80P - interest earned from co-operative banks - HELD THAT:- This issue is squarely covered in favour of the assessee by the decision of Hon’ble Gujarat High Court in the case of State Bank of India [2016 (7) TMI 516 - GUJARAT HIGH COURT] wherein it was held that Section 80P(2)(d) specifically exempts interest earned from funds invested in co-operative societies and therefore, to the extent of the interest earned from investments made by it with any co-operative society, a co-operative society is entitled to deduction of the whole of such income under section 80P(2)(d). Interest earned from investments made in any bank, not being a co-operative society, is not deductible under Section 80P(2)(d) of the Act. In the present case, the amount of interest in question was earned by the assessee from co-operative banks and this being the undisputed position, said interest income is eligible for deduction under Section 80P(2)(d) of the Act. The impugned order passed by the learned CIT(A) on this issue is, therefore, set aside and the Assessing Officer is directed to allow the claim of the assessee for deduction under Section 80P(2)(d) - Decided in favour of assessee.
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