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Gujarat HC: Section 80P(4) Does Not Bar Co-operative Bank Interest Deductions

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Summary

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  • The Gujarat High Court upheld a ₹5,87,74,816 deduction under Section 80P(2)(d) of the Income Tax Act for Kutch District Co-operative Milk Producer Union Ltd. for AY 2020-21.
  • The court ruled against the Revenue's appeal, affirming that interest from investments with a co-operative bank qualifies for deduction despite Section 80P(4).
  • This decision follows precedent set in PCIT-1 v. Ashwinkumar Arban Co Operative Society Ltd., reinforcing the status of co-operative banks as eligible entities.
  • The ruling clarifies the interpretation of co-operative banks under tax laws and may influence future claims by similar societies across India.

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