Summary
- The Gujarat High Court has upheld a ā¹5,87,74,816 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 in favor of the union, affirming that interest from investments with a co-operative bank qualifies for the deduction, referencing its previous decision in PCIT-1 v. Ashwinkumar Arban Co Operative Society Ltd.
- This ruling counters the Revenue's argument that co-operative bank interest should not qualify for deductions under Section 80P(2)(d).
- The implications of this decision could significantly impact how co-operative societies approach deductions on interest income moving forward
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