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2009 (11) TMI 534 - HC - Income TaxDeduction u/s 80P - deduction under Section 80P(2)(a)(i) in respect of interest earned on deposits made out of the non-SLR funds - normal banking business/activities - Held that: - The words used by the legislature are very important. The first word used is attributable, which is much wider in scope than the word derived. The second phrase used is any one or more of such activities. Any banking business providing credit facilities to its members and investing the sums deposited by the members of the society is part of banking business - the investment of the funds by the banks including the non reserves were part of the banking activities since no bank would like its reserve funds to remain idle and not earn any interest - herefore, the interest earned on such deposits is directly attributable to the business of banking - Deduction allowed.
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