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| The Tax Publishers2020 TaxPub(DT) 0727 (Ahd-Trib) INCOME TAX ACT, 1961
Section 80P
Where interest income earned on FDR kept with scheduled bank was not attributable to business carried on by assessee, the same would not qualify for deduction under section 80P(2)(a)(i).
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Deduction under section 80P - Co-operative society - Banking business - Interest income from scheduled bank
Assessee-cooperative society was engaged in business of providing credit facilities to its members. It claimed deduction under section 80P in respect of interest income on FDR kept with scheduled bank. AO disallowed the said claim of the assessee. Held: Since interest income earned on FDR kept with scheduled bank was not attributable to business carried on by assessee, the same would not qualify for deduction under section 80P(2)(a)(i). However, only net interest income would be excluded from the eligibile amount for grant of deduction.
Followed:Vir Transport Operator Co-op. Credit & Services Society & Ors. v. ITO [ITA No.2018/Ahd/2017, 2019/Ahd/2017 And ITA No.97/Ahd/2017, dt. 9-1-2020].
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
INCOME TAX ACT, 1961
Section 80P
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