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2013 (7) TMI 560 - HC - Income TaxDeduction u/s 80P(2)(a)(i) - Income from non-SLR funds - Tribunal held income from non-SLR funds is income from Banking Business and consequently exempt u/s 80-P(2)(a)(i) - Held that:- The question as to whether the business 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 - Following decision of Commissioner of Income-Tax Versus Baroda Peoples Co-operative Bank Ltd. [2005 (7) TMI 33 - GUJARAT High Court] - Decided against Revenue.
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