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2016 (1) TMI 573 - ITAT MUMBAIDeduction u/s 80P - CIT(A) allowed the claim even thought the assessee carries on banking business/other business in the name of credit co-operative society - Held that:- Commissioner of Income Tax (Appeals) has already examined the expenditure account of the assessee. The assessee received interest of ₹ 16,74,584/- on fixed deposits and no other interest income from FDs was credited. In the balance sheet, the accrued interest, as on 31/03/2010, on FDs, was shown at ₹ 30,46,494/- whereas as on 31/03/2009, it was ₹ 23,90,648/-. The interest has been received either from a schedule bank or a cooperative bank. No interest income has been received by the assessee from its investment in a cooperative society. In the present appeal, the assessee has invested statutory reserved funds in fixed deposits with schedule banks/cooperative banks. Such reserves funds are either surplus funds or which cannot be utilized or appropriated by the assessee for its day to day activities including granting of loan to its members, meaning thereby, such reserve funds has to be invested only for the highly restricted purposed as mentioned in the bye laws of the assessee society. - Decided against revenue
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