Court held that the assessee was not entitled to deduction of interest from scheduled bank under section 80P(2)(a)(i) . The Assessing Officer was to work out the net interest earned from the deposits with the scheduled bank. That interest earned from co-operative bank or society would qualify for grant of deduction. Amount received from its members towards form fee, was attributable to and arose from the assessee’s day-to-day activities. Allowable as seduction . That the standard deduction of Rs. 50,000 claimed by the assessee under section 80P(2)(c) being a statutory deduction, the assessee would be entitled to the deduction. (AY.2014-15)
Balasinor Vikas Co-Operative Credit Society Ltd. v.Dy .CIT (2020) 78 ITR 15 (SN) (Ahd) (Trib) Shri Jalaram Mahila Co-Operative Credit Society Ltd. v. Dy. CIT (2020) 78 ITR 15 (SN) (Ahd) (Trib) Anand Catholic Co-Operative Credit Society Ltd. v. Dy. CIT (2020) 78 ITR 15 (SN) (Ahd) (Trib)
S. 80P : Co-operative societies -Interest earned from Scheduled Bank — Not deductible — Net interest from deposits with Scheduled Bank to be excluded-Interest from Co-Operative Bank Or Society — Deductible -Receipt from its members towards form fee —Deductible-Standard deduction — Allowable. [ S.80P(2)(a)(i), 80P(2)( c) , 80P(2)(d) ]