Eligibility for S.80P(2)(d) Deduction on Interest Income from Cooperative Banks: ITAT Upholds CIT(A) Order

The ITAT upheld the order granting a deduction under Section 80P(2)(d) of the Income Tax Act for interest income earned by a cooperative bank. The case involved a cooperative bank that had earned interest income from deposits made with other banks. The issue was whether the interest income qualified for deduction under Section 80P(2)(d), which allows such deductions for cooperative societies. The tribunal ruled in favor of the cooperative bank, affirming the deduction’s eligibility. This decision provides clarity on the tax treatment of interest income for cooperative banks, ensuring that they benefit from tax incentives available under the relevant provisions of the Income Tax Act.