ITAT Allows Deduction To Credit Cooperative Society On Interest Earned/Dividend From Investment Made With Cooperative Bank

The Income Tax Appellate Tribunal (ITAT) has ruled on the deduction of interest earned by a credit cooperative society on its investments. The society's claim to deduct the interest income under Section 80P of the Income Tax Act was upheld. The tribunal concluded that such interest income, when earned from investments in cooperative banks, qualifies for deduction, reinforcing the earlier ruling by the Commissioner of Income Tax (Appeals). This decision supports the view that credit cooperative societies should benefit from tax deductions on interest earned from cooperative banks, aligning with the broader objectives of promoting cooperative financial institutions.