S.80P(2)(d) Exclusion on Fixed Deposit Interest has to be considered u/s 57 of Income Tax: ITAT directs AO to Reassess Matter

The Income Tax Appellate Tribunal (ITAT) has directed the Assessing Officer (AO) to reassess the exclusion of interest earned on fixed deposits under Section 80P(2)(d) of the Income Tax Act. The tribunal ruled that such interest should be considered under Section 57, which pertains to income from other sources. The ITAT's decision clarifies the tax treatment of interest income for cooperative societies, particularly those that claim deductions under Section 80P. The reassessment could potentially alter the tax liability of these societies, depending on how the AO applies the tribunal's directions.