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RU
ITAT Panaji Allows Section 80P(2)(d) Deduction on Interest From Co-operative Bank
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Before the ITAT, the sole issue was whether interest earned by a co-operative society on term deposits with a State Co-operative Bank qualified for deduction under Section 80P(2)(d).
It further observed that Section 80P(4) applies only where the claimant itself is a co-operative bank and does not deny deduction to a co-operative society receiving interest from another registered co-operative society.
The Tribunal found that the assessee was a registered co-operative society and that GSCBL was also a registered co-operative society under the Goa State Co-operative Societies Act.
In terms of section 10 (supra) the GSCBL is granted registration under ‘class-3 as cooperative bank with sub class as central Bank’.
GSCBL although is a co-operative bank in common parlance but not a co-operative bank strictly within the meaning assigned in Part V of BRA.