The assessee is a co-operative society was engaged in the business of providing credit facilities to its members. Profit earned from providing the credit facilities from members was eligible for deduction under section 80P (2) (a) of the Act. Interest earned from the surplus profit deposited with bank or other permitted institutions is also eligible for the benefit of deduction under section 80P (2)(a) of the Act.
PCIT v. Sahyadri Co-operative Credit Society Ltd. (2024) 301 Taxman 36 (Ker.)(HC)
S. 80P: Co-operative societies-Deduction-Surplus profit earned from the business of providing credit facilities to the members kept in the bank-Interest income earned therefrom is eligible for deduction under section 80P of the Act.[S.80P(2)(a),80P(2)(d)]