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2023 (6) TMI 32 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - interest income on deposits made out of the surplus funds in cooperative bank and scheduled bank - HELD THAT:- There is a cleavage of judicial opinion among several High Courts on the issue of eligibility of this kind of income for exemption u/s. 80P(2)(a)(i). The Coordinate Bench of Pune Benches in the case of M/s. Ratnatray Gramin Bigar Sheti Sah. Pat Sanstha Maryadit [2018 (12) TMI 1926 - ITAT PUNE] taken view in favour of the assessee following the judgment of Tumkur Merchants Souharda Credit Cooperative Ltd [2015 (2) TMI 995 - KARNATAKA HIGH COURT] Respectfully following the decision of the Coordinate Bench of the Tribunal, interest income earned on fixed deposits with cooperative/scheduled banks partakes the character of the business income, which is eligible for deduction u/s 80P(2)(a)(i) of the Act. Thus, the grounds of appeal filed by the assessee stand allowed.
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