Co-operative bank income deduction under section 80P(2)(a)(i) upheld on interest, subsidy and dividend receipts.

Income of a co-operative bank from interest on securities, government subsidies and dividend business income was treated as eligible for deduction under section 80P(2)(a)(i) of the Income-tax Act because earlier Supreme Court rulings had already settled that such income falls within the provision. The Revenue's attempt to reopen the same issue was not accepted, and the earlier decisions were followed as governing authority. The deduction was therefore held allowable on the income in question.

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Issues: Whether interest on securities, subsidies received from the Government, and dividend business income of a co-operative bank are entitled to deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961.

Analysis: The question had already been answered in earlier decisions of the Supreme Court, which had held that the relevant income of a co-operative bank falls within the scope of the deduction. The Revenue's attempt to re-agitate the same issue was not accepted, as the earlier rulings were treated as governing the controversy.

Conclusion: The question was answered in favour of the assessee, and the deduction under section 80P(2)(a)(i) was held to be allowable on the income in question.

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