Hon'ble Prakash Krishna,J.
The appeal is admitted on the following substantial questions of law:
1. Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in arriving at the conclusion that interest on "Non-SLR Investments" would qualify for deduction u/s 8OP (2)(a)(i) of the Act. without first insisting on as to whether such funds have indeed been utilized in the course of business?
2. Whether on the facts and in the circumstances of the case, the investments made outside the permissible limits of the Regional Rural Bank would qualify to be of the nature of "banking business" contrary to the provisions of Explanation to Section 37(1) and consequently income arising there from would be eligible to deduction u/s 80P (2)(a)(i) of the Act?
3. Whether on the facts and in the circumstances of the case the order of the Tribunal in holding that the interest income on "Non-SLR Investmetns" is eligible for deduction under section 80P (2)(a)(i) of the Act, is legally tenable and justified ignoring the deployment of the funds raised in the notified area and parked with sponsored bank for investment in securities outside notified area, which should have been lent to the eligible people in the notified area, is against the aims and objects enshrined in Section 3(1) and preamble of the RRB Act. 1976 being against the public policy?
Issue notice to the assessee. Steps be taken within three weeks.
List thereafter.
Order Date :- 27.3.2012 R