Eligibility of Interest Income for Deduction u/s 80P(2)(d) of Income Tax Act: ITAT Upholds CIT(A)’s Order

The ITAT has upheld the CIT(A)’s order on the eligibility of interest income for deduction under Section 80P(2)(d) of the Income Tax Act. The case involved a cooperative society seeking deductions for interest income under Section 80P. The ITAT upheld the CIT(A)’s decision, affirming that the interest income was eligible for deductions. This ruling provides clarity on the application of Section 80P, which offers tax benefits to cooperatives. It highlights the importance of accurate interpretation of tax provisions for cooperative societies and ensures that they are not denied legitimate deductions. The decision supports the tax-friendly environment for cooperative entities.