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2014 (11) TMI 609 - HC - Income TaxAllowability of deduction on interest income u/s 80P(2)(a)(i) - Whether the Tribunal was right in law in allowing deduction u/s 80(P)(2)(a)(i) on interest income as being attributable to the business of banking – Held that:- In Commissioner of Income-Tax Versus Baroda Peoples Co-operative Bank Ltd. [2005 (7) TMI 33 - GUJARAT High Court] it has been held that as per the Scheme of the Income Tax Act net income relatable to a particular head or item has to go in as a component of the gross total income before any deduction under Chapter VIA is allowed – u/s 80P(2)(a)(i) of the Act the two activities, viz., business of banking or providing credit facilities to its members, are distinct and separate activities; the former connotes a larger activity than the activity of providing credit facilities to its members - the Tribunal was right in allowing deductions u/s 80P(2)(a)(i) of the Act on interest income as being attributable to the business of banking – decided against revenue.
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