Cooperative Society Eligible for Income Tax Deduction u/s 80P(2)(a)(i) on Bank Interest Income: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that a cooperative society is eligible for income tax deduction under Section 80P(2)(a)(i) on bank interest income. The case involved a cooperative society that had earned interest income from its bank deposits, which the Assessing Officer (AO) denied as a deduction. The ITAT found that the interest income was attributable to the society’s business activities and qualified for deduction under Section 80P(2)(a)(i). The tribunal directed the AO to allow the deduction, providing relief to the cooperative society. This ruling clarifies the eligibility of cooperative societies for income tax deductions on bank interest income, supporting their financial sustainability.