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2016 (3) TMI 1296 - AT - Income TaxClaim for exemption u/s 80P(2)(i)(a) - interest earned - Held that:- As relying on Mahaveer Co-op. Union Bank Ltd [2013 (10) TMI 463 - ITAT HYDERABAD] section 80P(2)(a) is given a restrictive meaning as including the interest earned only on the statutory deposits made by a co-operative society, it would amount to supplying a casus omissus and has to be avoided by the court - Investment of funds by banks including the non-reserves is part of banking activities since no bank: would like its reserve funds to remain idle and not earn any interest. Therefore, the interest earned on such deposits is directly attributable to the business of banking and, therefore, exempt under section 80P(2)(a)(i) – Decided against the Revenue.
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