2017 (10) TMI 58 - ITAT MUMBAI

Disallowance of deduction u/s 80P(2)(d) - interest income earned by the the appellant on the deposits placed with Co-operative Banks - Held that:- After carefully perusing the provisions of sub-section (4) which has been inserted by the Finance Act 2006 is not applicable in the present case. The same has been withdrawn in the case of co-operative bank and not co-operative societies. In our opinion, the assessee is entitled to deduction u/s 80P(2)(d) of the Act with respect to the income earned on the deposits made with the other co-operative banks. Thus we set aside the order of ld. CIT(A) and direct the AO to allow deduction. - Decided in favour of assessee.