Interest income exemption under section 80P(2)(a)(i) upheld for Government securities on consistency with earlier year ruling.

Interest income from Government securities was treated as eligible for exemption under section 80P(2)(a)(i) because the Tribunal found the same factual and legal position had already been covered in an earlier assessment year. Applying that prior decision, the assessee's claim for exemption was held admissible for the present year as well, and the Revenue's objection failed.

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Issues: Whether income from interest on Government securities was eligible for exemption under section 80P(2)(a)(i) of the Income-tax Act, 1961.

Analysis: The issue was held to be covered by the Tribunal's decision for an earlier assessment year, and the same factual and legal position was found to govern the present year as well. The assessee's claim for exemption on interest income from Government securities was therefore treated as admissible.

Conclusion: The exemption under section 80P(2)(a)(i) was correctly allowed, and the Revenue's objection failed.

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