Kerala Co-op Bank Secures Tax Win: ITAT allows ₹16.5 Lakh Deduction u/s 80P

The ITAT (Income Tax Appellate Tribunal), Cochin bench, ruled in favor of a "Kerala Co-operative Bank," allowing a "₹16.5 lakh deduction under Section 80P" of the Income Tax Act. The tribunal overturned the Assessing Officer's and CIT(A)'s earlier denial, citing the Supreme Court's precedent in the Mavilayi Service Co-operative Bank Ltd. case. Section 80P provides deductions for cooperative societies engaged in providing credit facilities to members. This decision brings clarity and significant relief to cooperative banks, ensuring they receive the tax benefits intended by law for their member-driven financial activities, particularly those supporting agricultural purposes.