Cooperative Society Wins Tax Deduction Claim: ITAT Orders Comprehensive Reassessment of Bank Investment Income Under Section 80P

ITAT restored matter to AO for re-computation of deduction u/s 80P regarding interest from bank investments. Following precedent in Cooperative Cane Development Union case, tribunal determined investments compliant with U.P. Cooperative Societies Act sections 58 and 59 and Rule 173 are attributable to cooperative society's business. Provident fund interest earnings, being held in custodial capacity for employees and not constituting direct society income, were deemed non-taxable. The tribunal directed comprehensive reassessment of deduction eligibility, emphasizing statutory compliance and proper characterization of investment income. .....

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