Income from Surplus Funds in Bank Deposits Eligible for Deduction u/s 80P(2)(a)(i) of Income Tax: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that income from surplus funds in bank deposits is eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act. The tribunal emphasized that interest income earned from surplus funds deposited in banks by cooperative societies qualifies for the deduction. This ruling provides clarity on the tax treatment of interest income for cooperative societies and supports their financial management practices.