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TMI Blog2015 (7) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... gment under challenge by the revenue is dated 13th November, 2009 passed by the learned Income Tax Appellate Tribunal pertaining to the assessment year 2006-2007. The Assessing Officer without spending a word, in the computation made by him in his order under Section 143(3) of the IT Act, deducted the interest earned by the assessee from the non-statutory funds. The aforesaid deduction was made be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identical benefit under the aforesaid section. Mr. Bharadwaj, learned Advocate, appearing for the assessee submitted that the assessee is a primary cooperative bank and is engaged in the business of banking. He relied upon Clause (b) of Section 5 of The Banking Regulation Act, 1949 in order to show the definition of the expression 'banking' which provides as follows: "(b) "banking" mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le for the benefit under Section 80P(2)(a)(i). He contended that there is no reason why a separate treatment has to be given. Mr.Bhowmik is unable to refute any of the submissions advanced by Mr.Bharadwaj. He has not disputed the fact that the assesse is a primary cooperative bank. He has also not disputed the fact that the assessee is engaged in banking business. He has also not disputed the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he opinion that the deposit of non-statutory fund made by the assessee amounts to an investment which is one of the activities of a banking company contemplated under Section 5(b) of the Banking Regulation Act, 1949 quoted above. We find therefore, no reason why the income should not be treated as a business income. It was not disputed by Mr.Bhowmik that if it is the business income then it is am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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