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2023 (4) TMI 631 - AT - Income TaxDeduction u/s 80P(2)(c)(ii) - interest income earned from co-operative bank - co-operative bank is a commercial bank and does not fall under the purview of “co-operative society” referred to in section 80P(2)(d) - AO held that co-operative banks are excluded from the applicability of section 80P of the Act and therefore, even the interest income earned by the assessee from the deposits from the investment made by it with the co-operative bank would not be exempt - HELD THAT:- It is pertinent to note that all co-operative banks are co-operative societies but vice versa is not true. We find that the coordinate benches of the Tribunal have consistently taken a view in favour of the assessee and held that even the interest earned from the co-operative banks is allowable as a deduction under section 80P(2)(d) of the Act. See Kaliandas Udyog Bhavan Premises Co-op Society Ltd vs ITO [2018 (4) TMI 1678 - ITAT MUMBAI]. We uphold the plea of the assessee and direct the AO to grant deduction u/s 80P(2)(d) of the Act to the assessee in respect of interest income earned from investment with co-operative banks. Accordingly, we set aside the impugned order passed by the learned CIT(A) - Decided in favour of assessee.
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