1. Delay condoned. Leave granted.
2. This Court has consistently held that investments made by a banking concern are part of the business of banking. The income arising from such investments would, therefore, be attributable to the business of bank falling under the head "Profits and gains of business" and thus deductible u/s 80P(2)(a)(i) of the income tax Act, 1961. This has been so held in The Bihar State Co-operative Bank Ltd. Vs. The Commissioner of Income Tax, Commissioner of Income Tax Vs. KARNATAKA STATE CO-OPERATIVE APEX BANK, and Commissioner of Income Tax Vs. Ramanathapuram Distt. Co-op. Central Bank Ltd.,
3. The principle in these cases would also cover a situation where a Co-operative bank carrying on the business of banking is statutorily required to place a part of its funds in approved securities. The appeals are accordingly dismissed without costs.
