https://www.taxtmi.com/caselaws?id=24738 Interest on securities earmarked against reserve and provident funds was held not to arise from the co-operative bank's business activity, so it did not qualify for exemption under section 81 of the Income-tax Act, 1961. By contrast, income from commission, exchange and miscellaneous receipts attributable to banking activity was treated as income from banking business and remained exempt under section 81. The controlling test applied was whether the receipt was attributable to an activity normally forming part of banking business; incidental receipts so connected were deductible, while earmarked security interest was not. en-us Thu, 04 Feb 1988 00:00:00 +0530 Fri, 22 Jan 2010 10:45:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24738 Interest on securities earmarked against reserve and provident funds was held not to arise from the co-operative bank's business activity, so it did not qualify for exemption under section 81 of the Income-tax Act, 1961. By contrast, income from commission, exchange and miscellaneous receipts attributable to banking activity was treated as income from banking business and remained exempt under section 81. The controlling test applied was whether the receipt was attributable to an activity normally forming part of banking business; incidental receipts so connected were deductible, while earmarked security interest was not. Case-Laws Income Tax Thu, 04 Feb 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24738