ITA 2245 and 2246/BANG/2026

Parties Involved

Facts Summary

The assessee, a Souharda Sahakari society registered under the Karnataka Souharda Sahakari Act, 1997, filed appeals against the orders passed by the Commissioner of Income Tax (Appeals) for the assessment years 2020-21 and 2022-23. The assessee claimed deductions under section 80P(2)(a)(i) of the Income Tax Act, 1961, for interest income earned from investments in Scheduled Banks and Co-operative Banks. The Assessing Officer and the Commissioner of Income Tax (Appeals) disallowed the deductions, treating the interest income as 'Income from Other Sources'. The assessee argued that the interest income was attributable to its business activities and should be eligible for deduction under section 80P(2)(a)(i) of the Act.…

Legal Issues

• 1. Whether the interest income earned from investments in Scheduled Banks and Co-operative Banks is eligible for deduction under section 80P(2)(a)(i) of the Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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