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2008 (9) TMI 310 - HC - Income TaxDeduction u/s 80P(2)(a)(i) – Interest Income and Rental Income – AO, Comm(A) and Tribunal has disallowed the claim observing that the interest earned on the investment of the provident fund money was not eligible for exemption under section 80P(2) (a) (i) of the Income-tax Act, because the said income has not been earned from regular business of banking. It also observed that the interest earned on investment of the provident fund amount did not form part of either the stock-in-trade or the circulating capital. For parity of reasons the Tribunal disallowed the deduction of the rental income also - Held that interest derived from investment of the provident fund amount and the rental income do not qualify for deduction under section 80P(2)(a) (i) of the Act. Appeal dismissed.
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