9911796707
TMI Blog2005 (8) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... ked against statutory reserve fund came to be disallowed - Learned counsel appearing for the Revenue fairly brought to our notice the judgment of the apex court in the case of CIT v. Karnataka State Cooperative Apex Bank, wherein the apex court held that interest arising from investment made, in compliance with statutory provisions to enable it to carry on banking business, out of reserve fund by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision, having noticed the judgment of the apex court in the case of Madhya Pradesh Co-operative Bank Ltd. v. Addl. CIT [1996] 218 ITR 438, issued a notice under section 148 to the respondent-assessee which was served on the respondent-assessee on January 16, 1997. The reassessment pursuant to the above notice was completed under section 143(3) read with section 148 on February 21, 1997. The d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mumbai. The Tribunal by its order dated August 12, 1998 allowed the above appeal holding that rule 54(1) of the Maharashtra Co-operative Societies Rules does not apply in the case of the respondent as the assessee is covered under section 70(b) of the Maharashtra Co-operative Societies Act, 1960. The Tribunal held that the respondent-assessee is not within the scope of rule 54(2) of the Maharash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed at the instance of the Revenue are as under: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the interest on Government securities earmarked for statutory reserve fund was a part of banking business and accordingly the assessee is eligible for deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961? 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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