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2009 (7) TMI 1150 - HC - Income TaxWhether on the facts and in the circumstances of the case, the ITAT was right in law in holding that the assessee is entitled to claim deduction u/s 80P(2)(a)(i) of IT Act, in respect of proportionate interest income derived on investments in Government securities in excess of SLR requirement out of reserve fund? Whether on the facts and in the circumstances of the case, the proportionate interest income derived by the assessee from the investment in SLR securities out of reserve Fund, is attributable to business of banking and the assessee is eligible to claim deduction u/s 80P(2)(a)(i) of the Act? Held that:- In the present case, the investments have been made by the Bank in government securities, fixed deposits, etc. and the income is utilized for business. There is nothing on record to show that this case of the assessee is not acceptable in view of the law clearly stated by the Bench of this Court in C. I. T. v. Ratnagiri District Central Co-operative Bank Ltd.[2001 (9) TMI 60 - BOMBAY High Court] for which we have no reasons to disagree. We dismiss the appeal while answering the questions in favour of the assessee.
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