1960 (2) TMI 8 - SUPREME COURT

Whether the investment by a co-operative bank of its assets in fixed deposits in the manner that the appellant bank had deposited its moneys falls within the term " business " and is therefore assessable under section 10 of the Income-tax Act, or it is an investment the interest from which would fall under the term " other sources " and therefore within section 12 of the Income-tax Act?

Held that:- High Court was in error in treating interest derived from deposits as not arising from the business of the bank and therefore not falling within the income exempted under the Notification. The appeal must therefore be allowed and the judgment and order of the High Court set aside. Appeal allowed.