https://www.taxtmi.com/caselaws?id=32734 Interest earned by a co-operative bank on deposits made from statutory reserve funds is attributable to its banking business where the placement of those funds is required by law and the money can be invested only in prescribed modes. On that basis, such interest is deductible under section 80P(2)(a)(i) of the Income-tax Act, 1961. The text also states that where the deposits are made with another co-operative society, the same interest income falls within section 80P(2)(d). The stated principle is that compulsory investment of reserve funds does not break the link with the banking activity, and interest from a co-operative society investment also qualifies for the separate deduction. en-us Wed, 27 Aug 2008 00:00:00 +0530 Wed, 25 Mar 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32734 Interest earned by a co-operative bank on deposits made from statutory reserve funds is attributable to its banking business where the placement of those funds is required by law and the money can be invested only in prescribed modes. On that basis, such interest is deductible under section 80P(2)(a)(i) of the Income-tax Act, 1961. The text also states that where the deposits are made with another co-operative society, the same interest income falls within section 80P(2)(d). The stated principle is that compulsory investment of reserve funds does not break the link with the banking activity, and interest from a co-operative society investment also qualifies for the separate deduction. Case-Laws Income Tax Wed, 27 Aug 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32734