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2010 (2) TMI 54 - HC - Income TaxDeduction u/s 80P(2)(a)(i) versus 80P(2)(c) - The primary business of the assessee is banking. For the assessment year 2004-2005, the assessee filed its return of income admitting an income of Rs.26,14,953/- and claimed exemption under Section 80-P of the Income Tax At. The assessee relied upon Section 80-P(2)(a)(i) for deduction in respect of income derived from purely banking activities. Holding that the assessee is engaged in the activity of purchasing and selling securities which does not partake the character of banking activities, the assessing officer did not allow the deduction under Section 80-P(2)(a)(i), but has allowed the deduction upto Rs.50,000/- in terms of Section 80-P(2)(c) of the Income Tax Act – held that - This being a factual finding by the Tribunal that the assessee had made profit from securities only abiding the RBI guidelines, we are not inclined to go into this ground. In fact the Tribunal had relied upon the decision in Mayavaram Co-operative Urban Bank Limited case in ITA No.208/Mds/2007 dated 7.9.2007, wherein the submission of the learned counsel for the assessee that the assessee was eligible for deduction on the whole amount of profits and gains of business attributable to any one or more than such activities was accepted for deduction – order of ITAT allowed full deduction u/s 80P(2)(a)(i) sustained
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