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2023 (4) TMI 894 - ITAT DELHIDisallowance of deduction claimed u/s 80P in respect of bank interest - interest income earned by the assessee is chargeable under the head ‘income from other sources’ and not the ‘business income’ of the assessee - HELD THAT:- Assessee accepts deposits from its members and provides credit facility to them at the time of their requirement - surplus funds not immediately required for deployment is kept in fixed deposits, which in turn, are pledged to the over draft facility taken by the assessee for transfer of funds to members either as loan or as repayment. Thus, it can be seen that the investment in fixed deposits is to augment the business activity of the assessee. In any case of the matter, as explained the interest income is also utilized for providing credit facility or repayment to members. Thus, interest income being inextricably linked to assessee’s business activities as a credit society, would be eligible for deduction under Section 80P(2) - Decided in favour of assessee.
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