https://www.taxtmi.com/caselaws?id=26124 Interest earned by a co-operative bank on securities maintained in mandatory compliance with section 24 of the Banking Regulation Act, 1949 was attributable to its banking business because those securities formed part of the bank's statutory assets and circulating capital, not voluntary investments. The Revenue's distinction between investment income and banking income was rejected on the ground that the securities were held to satisfy a legal requirement of the banking law. The interest was therefore treated as income from the banking business and qualified for exemption under section 80P(2)(a)(i) of the Income-tax Act, 1961, in favour of the assessee. en-us Tue, 04 Jun 1985 00:00:00 +0530 Wed, 03 Feb 2010 10:14:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26124 Interest earned by a co-operative bank on securities maintained in mandatory compliance with section 24 of the Banking Regulation Act, 1949 was attributable to its banking business because those securities formed part of the bank's statutory assets and circulating capital, not voluntary investments. The Revenue's distinction between investment income and banking income was rejected on the ground that the securities were held to satisfy a legal requirement of the banking law. The interest was therefore treated as income from the banking business and qualified for exemption under section 80P(2)(a)(i) of the Income-tax Act, 1961, in favour of the assessee. Case-Laws Income Tax Tue, 04 Jun 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26124