9911796707
TMI Blog2007 (7) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... on ground that HDFC is not an approved securities as RBI or NABARD – since it is not mandatory to invest funds only in approved securities like RBI, income from HDFC bonds is allowable for deduction u/s 80P(2)(a)(i) - 594 to 596 of 2006 - - - Dated:- 3-7-2007 - M. M. KUMAR and AJAY KUMAR MITTAL JJ. Sanjeev Bansal, for the appellant. JUDGMENT The judgment of the court was delivered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its voluntary reserves other than the statutory reserves in HDFC bonds not approved by RBI and NABARD?" 2. The facts are not in dispute. The assessee is a Co-operative Bank engaged in the business of banking. It has claimed that the whole of its income is deductible under Section 80P(2)(a)(i) of the Act. The Assessing Officer in his order dated 16-10-2002 passed under Section 143 (3) held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gments delivered by the Hon'ble Supreme Court in the cases of Commissioner of Income-Tax v. Karnataka State Co-operative Apex Bank (2001), 251 ITR 194 and Mehsana District Central Cooperative Bank Ltd. v. Income-Tax Officer (2001), 251 ITR 522. The Tribunal has noticed that the learned counsel for the revenue was not able to controvert the argument raised by the counsel for the assessee wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o/cash reserve ratio. According to the learned counsel, there are mandatory requirements prescribed by the Reserve Bank of India for carrying on the business of banking. Learned Counsel has maintained that the investment made by the assessee in the HDFC bonds was not in the approved securities as per qualification issued by the National Bank for Agricultural and Rural Development (NABARD). 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not been able to point out any mandatory requirements prescribed by the Reserve Bank of India for carrying on the business of banking which may require investment of funds in the approved security for the purposes of maintaining statutory liquidity ratio/cash reserve ratio. Therefore, the question of law which is claimed by the revenue would not emerge from the order of the Tribunal and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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