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2009 (9) TMI 570 - HC - Income TaxCo-Operative Society - Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in holding that rental income of Rs. 12,21,698 from house property does not qualify for deduction under section 80P of the Income-tax Act as banking business income ?(2) Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in holding that the interest income of Rs. 14,23,316 earned on investment of reserve fund is not derived from regular banking business of the appellant and does not qualify deduction under section 80P of the Income-tax Act ? Held that - section 6(1) of the Banking Regulation Act, 1949, indicates the forms of business in which banking companies may engage. Section 6(1) incorporates "leasing" which means that the business of leasing by the banking company is a recognized form of business. Obviously, therefore, the income derived by the appellant, a co-operative bank from lease of immovable property would be entitled to special deduction u/s 80P.
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