Mehsana Dist. Central Co.op Bank Ltd. vs Commissioner of Income Tax

D.A. Mehta, J.—Learned Counsel appearing for both the sides state that the issue raised by the proposed question in this reference stands concluded by a judgment rendered by this Court in case of Commissioner of Income Tax-III Vs. The Baroda Peoples Co-op. Bank Ltd., and submit that in the circumstances though Paper Book is not filed the said requirement may be dispensed with and the reference may be taken up for hearing.

Accordingly, the reference is taken up for hearing and the necessity to file Paper Book is dispensed with in these facts.

Income Tax Appellate Tribunal, Ahmedabad Bench ''A'' has referred the following question for Assessment Year 1994-95 at the instance of the applicant-assessee:

Whether the Hon''ble ITAT was right in law and on the facts of the case by holding that the interest income amounting to Rs. 81,10,923/- on certain investments of statutory Reserve Fund of the applicant bank can not be considered as the income of the applicant Bank, from its banking business and therefore the same is not eligible for deduction u/s 80P(2)(a)(i) of the I.T. Act, 1961.

As it is an agreed position between the parties that the issue stands answered by judgment rendered in case of Commissioner of Income Tax v. Baroda Peoples Co-operative Bank Ltd. (supra), it is not necessary to set out facts and contentions in detail. For the reasons recorded in the said judgment, the question referred for the opinion of this Court, is answered in the negative i.e. in favour of the assessee and against the revenue. The reference stands disposed of accordingly with no order as to costs.