https://www.taxtmi.com/caselaws?id=218840 Interest earned by a co-operative bank on deposits of non-SLR funds is treated as income attributable to the business of banking where the funds represent surplus or idle circulating capital deployed in the course of banking operations. The document states that the character of the income does not change merely because the deposits are non-SLR, and the reasoning applied to SLR deposits extends to such investments when made as part of normal banking activity. On that basis, the interest is deductible under Section 80P(2)(a)(i) of the Income-tax Act, 1961, and the issue is stated to be in favour of the assessee. en-us Wed, 07 Nov 2012 00:00:00 +0530 Tue, 27 Nov 2012 14:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218840 Interest earned by a co-operative bank on deposits of non-SLR funds is treated as income attributable to the business of banking where the funds represent surplus or idle circulating capital deployed in the course of banking operations. The document states that the character of the income does not change merely because the deposits are non-SLR, and the reasoning applied to SLR deposits extends to such investments when made as part of normal banking activity. On that basis, the interest is deductible under Section 80P(2)(a)(i) of the Income-tax Act, 1961, and the issue is stated to be in favour of the assessee. Case-Laws Income Tax Wed, 07 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218840