2024 (2) TMI 1040 - ITAT JODHPUR

Denial of deduction claimed u/s 80P (2)(d) - AO disallowed the benefit by invoking the provision of section 154 for rectification of mistake change of opinion - interest derived by the Co-operative society from its investments with any other co-operative society - HELD THAT:- The issue of allowability of deduction of interest received from other co-operative society (though the said co-operative society is doing banking activities) is allowable u/s 80P(2)(d) of the Act is already decided by the Jodhpur bench in the case of in the case ITO Vs. Bhilwara Zila Dugdh Utpadak Sahkari Sang Ltd., [2023 (9) TMI 1410 - ITAT JODHPUR] wherein as held Section 22 of the Regional Rural Bank Act provides that Regional Rural Bank to be deemed to be a co-operative society for purpose of the Income-tax Act, 1961, thus considering the provisions of section 22 of Regional Rural Bank Act, wherein the status of the banks established are of the co-operative society the assessee is entitled for the exemption on the interest earned on the deposits.

Thus allowability of deduction of interest u/s. 80P(2)(d) decided in favour of assessee.