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2022 (6) TMI 937 - AT - Income TaxDeduction u/s. 80P(2)(d) - AO disallowed the claim of deduction of interest income earned from Villupuram District Co-operative Bank - HELD THAT:- As assessee could not deny that the assessee has earned interest from Villupuram District Co-operative Bank and Villupuram District Co-operative Bank is not a bank and co-operative society. He admitted that the Villupuram District Cooperative Bank is holding the license from RBI and is governed by Banking Regulation Act, 1949. Once the assessee has deposited amount with Villupuram District Co-operative Bank, which is a bank regulated by RBI and Banking Regulation Act, 1949, the interest earned from the deposits made with the same cannot be claimed as deduction u/s. 80P(2)(d) of the Act, because it does not fulfill the condition as prescribed under clause (d), which says that the deduction can be claimed in respect of any income by way of interest or dividend derived by co-operative society from its investment with any other co-operative society and not with the bank or co-operative bank governed by the regulation of RBI and the Banking Regulation Act, 1949. In view of the above, we dismiss the appeal of assessee.
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