The Pune bench of Income Tax Appellate Tribunal has held that interest income earned on fixed deposits with the cooperative /scheduled bank is eligible for deduction under Section 80P (2)(a)(i) of Income Tax Act 1961.
The matter pertains to the Assessee Jankalyan Nagari Sahakari Patsanstha Ltt, reports Taxscan.
Recently, co-operators across the country had welcomed the judgment of the Supreme Court giving a big relief to credit co-ops. While some call it a historic Judgment, others say the judgement will unleash fresh energy into the working of credit co-ops.