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2022 (12) TMI 793 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - interest from Cooperative Banks in respect of availing facility to take cash from the said banks - HELD THAT:- From the perusal of Profit & Loss account the said receipts of dividend are shown to the extent of Rs. 12,660/- of bank share and thus the total receipt from Cooperative Banks come to Rs. 19,14,547/-. The reliance of the Hon’ble Supreme Court’s decision that of Totgars Cooperative Sale Society Ltd. [2010 (2) TMI 3 - SUPREME COURT] is not justifiable in the present case as the interest income had on the surplus of its funds not immediately required for its business was declared as not income from business by the Hon’ble Supreme Court in the said case. But in the present case the assessee claim deduction on interest from Cooperative Banks in respect of availing facility to take cash from the said banks which is directly related to the business of the assessee society. Thus, the CIT(A) as well as the AO was not right in disallowing the interest component claimed by the assessee under Section 80P(2)(a)(i) of the Act. Appeal of the assessee is allowed.
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