The Pune Bench of the Income Tax Appellate Tribunal has allowed a deduction of Rs 10,14,038 to Aditya Urban Co-operative Credit Society under Section 80P(2)(d) of the Income Tax Act, according to a report in Taxscan.
The society had earned interest from fixed deposits with cooperative banks, which the Assessing Officer had earlier disallowed, treating it as income from other sources.
However, the Tribunal ruled that since the interest was derived from cooperative banks—registered cooperative societies—the income qualifies for deduction.
