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2012 (11) TMI 855 - HC - Income TaxExemption of Income u/s 80P - Interest on deposits of non-SLR funds - Income from Banking Business - held that:- Whether the business Income is derived from or attributable to SLR or non-SLR funds would not make any difference for the purposes of qualifying the interest earned by the cooperative bank under Section 80P (2) (a) (i) as the deposits of surplus idle money available from working capital, including reserves, excess collection of interest tax and other incomes are all attributable to the business of banking. The interest from such deposits cannot be said to be beyond the legitimate business activities of the bank - ITAT committed no error in arriving at findings that the interest are not deposits of non-SLR funds and the cooperative bank will qualify for exemption under Section 80P (2) (a) (i) of the Act - decided against the revenue and in favour of the respondent assessee.
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