Case Law Analysis
|Income Tax Appellate Tribunal
Section 80P(2)(d) IT Act | Interest Income from Cooperative Banks Qualifies for Deduction by Primary Credit Cooperatives : ITAT Pune
Primary credit cooperative societies are entitled to claim deduction under Section 80P(2)(d) for interest earned from cooperative banks, overturning the tax officer’s disallowance. This ruling clarifies that such income is intrinsic to the cooperative’s core function of providing credit to members, reinforcing tax exemption for rural financial cooperatives operating under state cooperative laws.