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2020 (11) TMI 200 - AT - Income TaxDeduction u/s 80P(2) on interest income received from co-operative banks - lower authorities disallowed the claim of deduction against this income and added to the income of the assessee - contention of the assessee before lower authorities was that assessee is basically a co-operative society and registered under Karnataka Co- operative Society Act, 1959 and as such the interest income earned from S.B. Account and F.Ds Account which is eligible for deduction under Section 80P(2) - HELD THAT:- As decided in M/s. Sindhu Credit Souharda Sahakari Niyamita [2019 (12) TMI 1277 - ITAT BANGALORE] Assessee’s claim regarding deduction u/s. 80P(2)(a)(i) cannot be rejected on this basis that assessee is a Souharda Sahakari and therefore, cannot be regarded as a co-operative society. But after holding so, set aside the order of CIT(A) and restore the matter back to the AO for fresh decision regarding allowability of deduction u/s. 80P(2)(a)(i) after examining other conditions for allowing such deduction because those conditions are not examined by the AO till now. Appeal of the assessee is allowed for statistical purposes.
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