YASHASWINI MAHILA SOUHARDA CREDIT COOPERATIVE SOCIETY LIMITED,BENGALURU vs. INCOME TAX OFFICER - WARD6(2)(1), BMTC BUILDING, KORAMANGALA, BENGALURU

ITA 2555/BANG/2026Status: DisposedITAT Bangalore18 September 2026AY 2022-20239 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest income earned by a cooperative credit society from deposits with nationalized/scheduled banks, out of its surplus funds not immediately required for lending to members, is attributable to its business of providing credit facilities. Therefore, it is eligible for deduction under Section 80P(2)(a)(i).

What were the facts?

The assessee, a cooperative credit society, earned interest income from deposits with nationalized/scheduled banks. The Assessing Officer treated this interest as 'Income from Other Sources' and disallowed deduction under Section 80P(2)(a)(i). The CIT(A) confirmed this disallowance for interest from nationalized banks but allowed it for cooperative banks.

What were the issues?

Whether interest income earned by a cooperative credit society from deposits with nationalized/scheduled banks is eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 56

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

PER SANDEEP SINGH KARHAIL, JUDICIAL MEMBER:

The assessee has filed the present appeal against the impugned order dated 29/04/2026, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], fo

The order continues below.

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