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2014 (3) TMI 890 - ITAT PANJIDeduction u/s 80P(2)(a)(i) of the Act – Sale of Govt. securities – Held that:- The assessee has a valid licence issued by the RBI for conducting banking business and as per the guidelines issued by the RBI an Urban Co-operative Bank is required to maintain investment in certain securities as per RBI guidelines that income derived from the funds was so placed arose from the business carried on by it - The placement of such funds being imperative for purpose of carrying on the banking business, the income derived therefrom would be income from the assessee’s business – Relying upon CIT vs. Nawanshahar Central Co-operative Bank Ltd. [2005 (8) TMI 28 - SUPREME COURT OF INDIA] - any income derived from funds so place arose from the business carried on by it and the assessee had not, by reason of section 80P(2)(a)(i), to pay income-tax – Decided against Revenue.
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