Allowing the appeal the Tribunal held that the amount invested by the assessee with PG bank was neither a sum due to any member nor a liability. It was money temporarily parked with PG bank to maintain the overdraft limit available to the assessee with M bank. The interest earned partook of the character of business income attributable to carrying on the business of banking and was eligible for deduction under section 80P. (AY.2013-14)
Thota Uthpannagala Marata Sahakara Sangha Niyamitha v. Dy.CIT (2021) 86 ITR 134 (Bang.)(Trib.)
S. 80P : Co-operative societies-Banking facilities to members-Income attributable to carrying on business of banking-Deduction allowable. [S. 80P(2)(a), 80P(2)(a)(iii), 80P(2)(a)(vi)]