Tribunal held that the assessees earned two types of interest : (a) interest from Nationalised Banks, and (b) interest from co-operative societies or co-operative Banks. Interest from scheduled banks under S. 80P(2)(a)(i) of the Act, was not entitled to deduction. The AO was to work out the net interest from the deposits with scheduled bank and thereafter exclude that amount from the computation of deduction claimed under S. 80P(2)(a)(i). Interest from co-operative banks or societies would qualify for grant of deduction under S.80P(2)(d). The AO was to work out the net amount of such interest and thereafter grant deduction under S. 80P(2)(d). (AY.2013-14, 2014-15)
Lunawada Taluka Primary School Teachers Co-Op. Credit Society Ltd. v. ITO (2020) 77 ITR 46 (SN) (Ahd.)(Trib.) Vir Transport Operator Co-Op. Credit and Services Society v. ITO (2020)77 ITR 46 (SN) (Ahd.)(Trib.)
S. 80P : Co-operative societies-Interest from Nationalised Banks-Not entitled to deduction-Net interest from deposits with Scheduled Bank to be excluded from computation of deduction-Interest from Co-Operative Societies or Co-Operative Banks-Entitled to deduction-Net interest to be allowed as deduction. [S.80P(2)(a)(i), 80P(2)(d)]