Deduction u/s 80P(2)(d) allowable to Co-Op Society on Interest Income from co-op banks: ITAT rules in Favour of Bangalore Credit Co- operative Society

The Income Tax Appellate Tribunal (ITAT) has ruled in favor of Bangalore Credit Co-operative Society, allowing deduction on interest income from co-operative banks. This significant decision clarifies the tax treatment of interest earned by cooperative societies from other cooperative banks. The ITAT likely found that such interest income qualifies for specific deductions or exemptions available to cooperative societies, promoting their financial viability. This ruling provides crucial relief to cooperative credit institutions, ensuring that their inter-cooperative financial transactions are appropriately treated for tax purposes, supporting the cooperative movement's financial structure.