The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) ruled that Thane Zilla Vidyasevak Sahakari Patpedhi Ltd is entitled to a deduction under Section 80P(2)(d) for interest earned from deposits with Thane District Central Co-Operative Bank, reports Tax Scan.
Earlier, the AO and CIT(A) had disallowed Rs. 94.12 lakh interest, treating it as income from other sources.
Citing coordinate bench rulings and Supreme Court principles favouring the assessee, the two-member ITAT bench set aside previous orders and directed the AO to grant the deduction for A.Y. 2018-19.
