https://www.taxtmi.com/caselaws?id=18075 Interest earned by a co-operative bank on reserve-fund investments in Government and approved securities is not treated as income attributable to banking business under section 80P(2)(a)(i) unless the securities form part of the bank's circulating capital or stock-in-trade and are freely deployable in ordinary banking operations. The character of the income depends on the nature of the investment under banking law, not merely on its source. Absence of sanction from the Registrar under the Co-operative Societies law does not by itself convert the income into non-banking income, but reserve-fund investments remained outside the exemption on the facts considered. en-us Mon, 22 Apr 1996 00:00:00 +0530 Sat, 26 Sep 2009 15:44:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18075 Interest earned by a co-operative bank on reserve-fund investments in Government and approved securities is not treated as income attributable to banking business under section 80P(2)(a)(i) unless the securities form part of the bank's circulating capital or stock-in-trade and are freely deployable in ordinary banking operations. The character of the income depends on the nature of the investment under banking law, not merely on its source. Absence of sanction from the Registrar under the Co-operative Societies law does not by itself convert the income into non-banking income, but reserve-fund investments remained outside the exemption on the facts considered. Case-Laws Income Tax Mon, 22 Apr 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18075