https://www.taxtmi.com/caselaws?id=13010 Interest on Indira Vikas Patra investments made by co-operative banks was treated as attributable to banking business where the funds formed part of circulating capital or stock-in-trade and had a direct nexus with banking operations. Income from deployment of mere surplus or idle funds would not qualify, but on the facts recorded the investments were made from funds generated in the course of banking activity and were capable of conversion into liquid funds for use in banking. The interest was therefore regarded as income from banking business and deductible under section 80P(2)(a)(i) in favour of the assessee. en-us Mon, 10 Sep 2001 00:00:00 +0530 Thu, 31 Jan 2013 16:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13010 Interest on Indira Vikas Patra investments made by co-operative banks was treated as attributable to banking business where the funds formed part of circulating capital or stock-in-trade and had a direct nexus with banking operations. Income from deployment of mere surplus or idle funds would not qualify, but on the facts recorded the investments were made from funds generated in the course of banking activity and were capable of conversion into liquid funds for use in banking. The interest was therefore regarded as income from banking business and deductible under section 80P(2)(a)(i) in favour of the assessee. Case-Laws Income Tax Mon, 10 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13010