Hon'ble Subhash Chandra Nigam,J.
This appeal under Section 260-A of the Income Tax Act has been filed by the Additional Commissioner of Income Tax, Saharanpur, raising the following question of law :
"(1) Whether on the facts and the circumstances of the case, the Tribunal is justified in holding that the interest earned by the Co-operative Bank on deposits of its non SLR funds qualify for deduction u/s 80 P(2)(a)(i) of I.T. Act, 1961 ?"
We are of the opinion that the issue involved in the present case is no more rest integral and is covered by the decision of the apex Court in the case of Commissioner of Income Tax v. Karnataka State Co-operative Apex Bank reported in 251 ITR 194, Mehsana District Central Cooperative Bank Ltd. v. Income Tax Officer reported in 251 ITR 522 and a recent decision of the apex Court in the case of Commissioner of Income Tax v. Nawanshahar Central Co-operative Bank Ltd. reported in 289 ITR 6 (SC) wherein it has been held that where a Co-operative Bank carrying on business of banking is statutorily required to place a part of its funds in approved securities, the income is attributable thereto is the business of banking and is deductable under Section 80P(2)(a)(i) of the Act. It is not the case of revenue that the assessee had carried on any other business, other than banking business. The deposit exceeding Statutorily Liquidity Rate (SLR) is also in relation to banking activity. Hence the income accrued out of such deposit also attributable to the bank business and deductible under Section 80P(2)(a)(i) of the Act. The issue involved in the present appeal is also covered by the decision of the apex Court in the case of M/s. Gorakhpur Kshetriya Gramin Bank, Gorakhpur v. Commissioner of Income Tax, Allahabad reported in 2007 U.P.T.C. 1466.
In view of the above, there is no substance in the appeal. The appeal is, accordingly, dismissed.
Order Date :- 6.1.2010 PG