Interest from Cooperative Banks Eligible for 80P Deduction: ITAT Allows ₹12.53 Lakh Claim Treating Banks as Societies

The ITAT (Income Tax Appellate Tribunal) has allowed a ₹1.253 lakh claim for 80P deduction, holding that "interest from cooperative banks is eligible for 80P deduction," treating the banks as societies. This ruling benefits cooperative societies, particularly those providing credit facilities to their members, by affirming that interest income earned from deposits with other cooperative banks qualifies for deduction under Section 80P of the Income Tax Act. The tribunal recognized the cooperative nature of such banks, aligning their treatment with the purpose of Section 80P to promote cooperative activities.