Losses from One Unit Need not Offset Profits of Another for Section 80-IB Deduction: ITAT

Interest Income from Co-operative Bank Qualifies as Business Income: ITAT Allows Co-operative Society to Claim Deduction u/s 80P The Income Tax Appellate Tribunal (ITAT) ruled that interest income earned by a co-operative bank qualifies as business income. The decision allows the co-operative society to claim a deduction under Section 80P of the Income Tax Act. The case involved a dispute where the tax authorities had assessed the interest income separately, not recognizing it as part of the society's business operations. The ITAT's ruling clarified that income earned from lending activities, including interest, is integral to the cooperative's business and thus qualifies for deductions, strengthening the position of co-operative societies in tax matters.