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2019 (5) TMI 423 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - interest income received by the assessee on investments made with District Co-operative Banks, Other Banks etc. - assessee is a primary agricultural credit societies, registered under the Kerala Co-operative Societies Act, 1969 - whether interest income received by the assessee on investments with sub-treasuries and banks was liable to be assessed under the head “income from other sources” or “income from business”? - HELD THAT:- In the instant case the assessee had made investments with sub-treasuries, District Co-operative Banks, other Banks in the course of its business of banking / providing credit facilities to its members. Therefore, it was entitled to deduction u/s 80P(2)(a)(i) in respect of interest income that was received on such investments in view of the above judicial pronouncements. Since we have found that the interest income was earned in course of carrying on business of banking and entitled to deduction u/s 80P(2)(a)(i), the claim u/s 80P(2)(d) is not considered. See THE VAVVERU CO-OPERATIVE RURAL BANK LTD. VERSUS THE CHIEF COMMISSIONER OF INCOME TAX, VIJAYAWADA [2017 (4) TMI 663 - ANDHRA PRADESH HIGH COURT] - Decided against revenue.
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