https://www.taxtmi.com/caselaws?id=11702 Interest earned by a co-operative bank on PSEB bonds acquired as a statutory investment and maintained as part of statutory reserves was treated as attributable to banking business and deductible under section 80P(2)(a)(i). The court held that, where the investment is made in compliance with statutory requirements and forms part of statutory reserves, the character of the funds used is immaterial; it does not matter whether the money came from surplus funds or circulating capital. The distinction drawn in later authority concerning voluntary reserves was inapplicable because the investment here was not from voluntary reserves. en-us Mon, 06 Jan 2003 00:00:00 +0530 Sat, 06 Feb 2010 11:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11702 Interest earned by a co-operative bank on PSEB bonds acquired as a statutory investment and maintained as part of statutory reserves was treated as attributable to banking business and deductible under section 80P(2)(a)(i). The court held that, where the investment is made in compliance with statutory requirements and forms part of statutory reserves, the character of the funds used is immaterial; it does not matter whether the money came from surplus funds or circulating capital. The distinction drawn in later authority concerning voluntary reserves was inapplicable because the investment here was not from voluntary reserves. Case-Laws Income Tax Mon, 06 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11702