The only issue that arises for consideration in this appeal is as to whether a sum of Rs. 76,17,450 which was interest earned by the assessee on surplus funds available with it is eligible for deduction u/s. 80P(2)(a)(i) or 2(d) of the Act.
Sec. 80P(2) of Income Tax Act, 1961— Deduction — Deduction u/s. 80P(2)(d) is not available to interest income earned on deposits with co-operative banks. - NAGAPURA CREDIT CO-OPERATIVE SOCIETY V/s ITO -  28 ITCD Online 065 (ITAT-BANGALORE)