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2023 (12) TMI 61 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - interest earned on deposits pertaining to reserve fund with DCC Bank which is a cooperative bank and other nationalised banks - contention of the AO is that interest accrued on Reserve Fund Deposits is not eligible for deduction u/s 80P - HELD THAT:- The coordinate bench of the Tribunal, on similar set of facts dismissed the appeal of the revenue in the case of Kakateeya Mutually Aided Thrift and Credit Co-op Society Ltd. [2023 (9) TMI 211 - ITAT VISAKHAPATNAM] and the same ratio was followed by the coordinate bench of the Tribunal in the case of Rangaraya Large Sized Cooperative Society [2023 (11) TMI 1207 - ITAT VISAKHAPATNAM] as held assessee has invested surplus funds out of the activities carried out as per the provisions of section 80P(2)(a) of the Act. We therefore held that interest income should be allowed as deduction U/s. 80P(2)(a)(i) of the Act and thereby the Ld. CIT(A) - NFAC has rightly held by deleting the addition made by the Ld. AO - Decided in favour of assessee.
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