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2022 (12) TMI 1322 - AT - Income TaxDeduction u/s 80P - assessee’s status as to whether it is a cooperative bank or a credit cooperative society as per the Revenue’s and assessee’s arguments, respectively - HELD THAT:- There could be hardly any dispute that hon’ble apex court’s recent landmark decision in Mavilayi Service Co-operative Bank Ltd [2021 (1) TMI 488 - SUPREME COURT] has settled the issue that assessee’s registration under the respective cooperative law itself forms the decisive factor. This assessee is further found registered as credit cooperative society only. I thus reject the Revenue’s instant arguments to this effect. Assessee had deposited its surplus in cooperative banks and derived interest therefrom which has been claimed as eligible for section 80P deduction - As decided in BELGAUM COAL & COKE CONSUMER COOPERATIVE ASSOCIATION LTD. [2021 (11) TMI 1121 - ITAT PANAJI]we hold that the interest income earned by the appellant society on investment made with the cooperative bank which are also cooperative societies is exempt from the Income Tax Act u/s 80P(2)(d) of the Act. Therefore, we hold that the lower authorities was not justified in denying the claim of deduction u/s 80P(2)(d) of the Act. Accordingly, we direct the Assessing Officer to allow the same as deduction u/s 80P(2)(d) - Assessee appeal is allowed.
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