https://www.taxtmi.com/caselaws?id=174744 A co-operative society engaged in banking business was entitled to deduction under section 80P(2)(a)(i) on interest earned from deposits made with a private limited company. The Court treated banking activity with reference to section 5(b) of the Banking Regulation Act, 1949, and held that deployment of surplus funds in deposits formed part of the society's banking operations. Following Grain Merchants Co-operative Bank Ltd., the interest income was held eligible for the statutory deduction, and the question of law was answered in favour of the assessee. en-us Fri, 01 Apr 2011 00:00:00 +0530 Thu, 22 Mar 2018 12:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174744 A co-operative society engaged in banking business was entitled to deduction under section 80P(2)(a)(i) on interest earned from deposits made with a private limited company. The Court treated banking activity with reference to section 5(b) of the Banking Regulation Act, 1949, and held that deployment of surplus funds in deposits formed part of the society's banking operations. Following Grain Merchants Co-operative Bank Ltd., the interest income was held eligible for the statutory deduction, and the question of law was answered in favour of the assessee. Case-Laws Income Tax Fri, 01 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174744