INCOME TAX ACT, 1961

--Deduction under section 80P--Co-operative bankTreatment of interest on advance rent --Assessee, a co-operative bank, had taken certain premises from the landlord for carrying on its banking business. At the request of the landlord, assessee paid advance rent subject to payment of interest. The interest income so received was claimed as income from banking business eligible for deduction under section 80P. assessing officer rejected the claim of assessee on the ground that the interest income received from advance rent could not be said to be from the banking business. Held: Interest income was directly linked to the banking business carried on by assessee and, hence eligible for deduction under section 80P.

Income Tax Act, 1961 Section 80P(2)(a)(i)

IN THE BOMBAY HIGH COURT