https://www.taxtmi.com/caselaws?id=219478 Interest earned by a co-operative bank on surplus or idle funds placed in deposits was treated as attributable to the business of banking and therefore eligible for deduction under Section 80P(2)(a)(i) of the Income-tax Act, 1961. The Court applied the settled principle that a bank deals in money and credit, so temporarily invested circulating capital remains part of banking activity when deployed as a normal incident of that business. The distinction between SLR and non-SLR funds was held to be immaterial for this deduction, and the interest income from non-SLR deposits was held deductible in favour of the assessee. en-us Thu, 08 Nov 2012 00:00:00 +0530 Fri, 29 May 2026 16:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=219478 Interest earned by a co-operative bank on surplus or idle funds placed in deposits was treated as attributable to the business of banking and therefore eligible for deduction under Section 80P(2)(a)(i) of the Income-tax Act, 1961. The Court applied the settled principle that a bank deals in money and credit, so temporarily invested circulating capital remains part of banking activity when deployed as a normal incident of that business. The distinction between SLR and non-SLR funds was held to be immaterial for this deduction, and the interest income from non-SLR deposits was held deductible in favour of the assessee. Case-Laws Income Tax Thu, 08 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=219478