2011 (7) TMI 80

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..... uld be income earned during the course of carrying on the business of banking - As the interest income earned by the assessee is directly linked to the banking business carried on by the assessee - Appeal is dismissed
J.P. DEVADHAR AND A.A.SAYED, JJ. Ms. Anamika Malhotra for appellant. Mr. S.N.Inamdar, senior Advocate with Mr. Mihir Naniwadekar for respondent. ORAL JUDGMENT (PER J.P. DEVAD .....

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..... ing officer rejected the claim of the assessee on the ground that the interest income received from advance rent cannot be said to be from the banking business as contemplated under Sect6ion 80P(2)(a)(i) of the Act. 5. On appeal filed by the assessee, the CIT(A) held that the interest income was received in the course of banking business and hence eligible for deduction under Section 80P of the .....

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..... hom premises were taken on rent for the purpose of carrying on banking business. Thus, the interest income in the present case is closely connected to the banking business carried on by the assessee. Thirdly, the Reserve Bank of India, controlling the banking business in India has issued guidelines on 18/6/1987 thereby permitting the co-operative banks to give advance rent to the landlords (from w .....

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