https://www.taxtmi.com/caselaws?id=235402 Interest earned by a co-operative bank on deployment of surplus or idle funds in non-SLR deposits is treated as income attributable to the business of banking when the deposits remain integrally connected with banking operations. The distinction between SLR and non-SLR deposits is not decisive where the funds are placed as part of ordinary banking activity and retain the character of circulating capital. Accordingly, such interest qualifies for deduction under Section 80P(2)(a)(i) of the Income-tax Act, 1961. en-us Wed, 07 Nov 2012 00:00:00 +0530 Mon, 22 Jul 2013 16:48:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235402 Interest earned by a co-operative bank on deployment of surplus or idle funds in non-SLR deposits is treated as income attributable to the business of banking when the deposits remain integrally connected with banking operations. The distinction between SLR and non-SLR deposits is not decisive where the funds are placed as part of ordinary banking activity and retain the character of circulating capital. Accordingly, such interest qualifies for deduction under Section 80P(2)(a)(i) of the Income-tax Act, 1961. Case-Laws Income Tax Wed, 07 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235402