https://www.taxtmi.com/caselaws?id=773800 The Tribunal allowed the co-operative bank's appeal, ruling it was entitled to deduction under section 80P(2)(d) of the Income Tax Act for interest income earned on deposits made with scheduled banks from surplus funds. The Tribunal distinguished the Supreme Court's decision in Totgars' case, noting that unlike situations where interest belongs to individual members, here the surplus funds had already become the bank's profits. Following precedents from Karnataka and Andhra Pradesh HCs, the Tribunal held that interest income from surplus fund deposits retains its character as banking business income, maintaining nexus with principal business operations and qualifying for statutory deduction. en-us Thu, 22 May 2025 00:00:00 +0530 Sat, 28 Jun 2025 08:31:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773800 The Tribunal allowed the co-operative bank's appeal, ruling it was entitled to deduction under section 80P(2)(d) of the Income Tax Act for interest income earned on deposits made with scheduled banks from surplus funds. The Tribunal distinguished the Supreme Court's decision in Totgars' case, noting that unlike situations where interest belongs to individual members, here the surplus funds had already become the bank's profits. Following precedents from Karnataka and Andhra Pradesh HCs, the Tribunal held that interest income from surplus fund deposits retains its character as banking business income, maintaining nexus with principal business operations and qualifying for statutory deduction. Case-Laws Income Tax Thu, 22 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773800