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Sec. 80P(2)(a)(i) of Income Tax Act, 1961— Deduction—Assessees were co-operative Societies carrying on the business of banking or providing credit facilities to its members. As per section 80P(2)(d) any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society will be allowed as deduction. Hence, interest received only from cooperative bank was allowed as deduction u/s 80P(2)(d) and remaining interest receivedwas added to the total income of the assessee under the head Income from Other Source.”
Court direct the matter be remanded to the Assessing Officer, to work out interest earned on the reserve fund, if invested and allow deduction therefore in addition to the deduction already allowed in applying section 80P(2)(d), as in the assessment order. Said deduction was correctly allowed and allowing of only it cannot be taken to imply, reason to have disallowed the other income was by going on manner of such investments.The appeal was disposed of. --- Pr CIT vs. ELECTRO URBAN CO-OPERATIVE CREDIT SOCIETY LTD. 23 ITCD Online 23 (CAL)