Interest Income received from Co-Op Society/Banks entitled to Deduction u/s 80P(2)(d): ITAT

ITAT ruled that interest income earned from cooperative society banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act. The case concerned whether such income qualifies for tax exemptions available to cooperative societies. The tribunal observed that cooperative principles govern the relationship, making the interest income eligible for deduction. This decision provides significant relief to taxpayers operating in the cooperative sector by reaffirming their rights to statutory tax benefits. Experts view this as a clarification that strengthens the cooperative framework and supports the financial stability of societies.