Section 80P deduction is not allowable on interest on fixed deposit

IT : Grant received by assessee-society from Government as market development allowance is business income eligible for deduction under section 80P
IT : Section 80P deduction is not allowable on interest on fixed deposit
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[2014] 49 taxmann.com 482 (Cochin - Trib.)
IN THE ITAT COCHIN BENCH
Aryad Block Small Scale Coir Fibre Mats Manufacturers Co-operative Society Ltd.
v.
Income-tax Officer, Ward-1, Alappuzha*
N.R.S. GANESAN, JUDICIAL MEMBER
AND CHANDRA POOJARI, ACCOUNTANT MEMBER
IT APPEAL NO. 787 (COCH.) OF 2013
[ASSESSMENT YEAR 2009-10]
AUGUST  14, 2014
Section 80P of the Income-tax Act, 1961 - Deductions - Income of co-operative societies (Marketing socities) - Assessment year 2009-10 - Whether grant received by assessee from Coir Development Directorate as market development allowance was to be treated as business income of assessee and was eligible for deduction under section 80P(2)(a)(i) - Held, yes [Para 8] [In favour of assessee]
Section 80P of the Income-tax Act, 1961 - Deductions - Income of co-operative societies (Marketing socities) - Assessment year 2009-10 - Whether interest earned by assessee by investing surplus funds in fixed deposits could be considered as business income so as to be entitled for deduction under section 80p(2)(a)(i) - Held, no [Para 9] [In favour of revenue]