Case Law Analysis
|Income Tax Appellate Tribunal
Section 80P(2)(a)(i) IT Act | Interest on Surplus Funds Attributable to Credit Business, Not Taxable as 'Other Income' : ITAT Bangalore
ITAT Bangalore rules that interest earned by co-operative societies on surplus funds parked in banks is attributable to their credit business under Section 80P(2)(a)(i), entitling them to tax exemption. The ruling overturns the revenue's restrictive interpretation, clarifying that such income cannot be reclassified as 'income from other sources' for co-operatives engaged in lending operations.