https://www.taxtmi.com/caselaws?id=57793 Interest earned by a co-operative bank on investments in Kisan Vikas Patras, Indira Vikas Patras, NABARD bonds and government securities, where the funds were reserve funds maintained in compliance with banking regulations, was treated as attributable to banking business and deductible under section 80P(2)(a)(i) of the Income-tax Act, 1961. The analysis linked the investments to the statutory concept of banking under the Banking Regulation Act, the business powers of a banking co-operative society, and liquidity requirements, and rejected the narrower view that only circulating or working capital could qualify. Income from liquid investments held in the course of banking activity was therefore brought within the deduction. en-us Wed, 31 Aug 2005 00:00:00 +0530 Mon, 13 Dec 2010 14:45:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57793 Interest earned by a co-operative bank on investments in Kisan Vikas Patras, Indira Vikas Patras, NABARD bonds and government securities, where the funds were reserve funds maintained in compliance with banking regulations, was treated as attributable to banking business and deductible under section 80P(2)(a)(i) of the Income-tax Act, 1961. The analysis linked the investments to the statutory concept of banking under the Banking Regulation Act, the business powers of a banking co-operative society, and liquidity requirements, and rejected the narrower view that only circulating or working capital could qualify. Income from liquid investments held in the course of banking activity was therefore brought within the deduction. Case-Laws Income Tax Wed, 31 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57793