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2010 (2) TMI 185 - HC - Income TaxCo-operative Society- Revenue filed appeal against the order of Tribunal upholding the order of the Commissioner (Appeals) by reaching the conclusion that the assessee, which is a cooperative apex bank cannot be subjected to income tax in respect of the interest received by it on the refund of excess income tax paid. It has further been found that the assessee Would be entitled to deduction under section 80P(2)(a)(i) of the Act. Held that- the assessee was entitled to special deduction under section 80P on the interest on refund of excess of Income Tax. Once the income tax paid was derived from business income then interest income would partake of the character of the Principal amount because the interest paid to the assessee is compensation on account of deprivation of the use of money.
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