Commissioner Of Income Tax-Iii - Appellant(S v. The Viramgam Mercantile Co-Op Bank Ltd. - Opponent(S

TAX APPEAL No. 82 of 2005 To TAX APPEAL No. 90 of 2005 For Approval and Signature: HONOURABLE MR.JUSTICE D.A.MEHTAHONOURABLE MS.JUSTICE H.N.DEVANI ============================================================= COMMISSIONER OF INCOME TAX-III - Appellant(s)Versus THE VIRAMGAM MERCANTILE CO-OP BANK LTD. - Opponent(s) ============================================================= Appearance : MR MANISH R BHATT for Appellant No(s).: 1. MR S N DIVATIA for Respondent No(s).: 1. ==================================================== CORAM : HONOURABLE MR.JUSTICE D.A.MEHTA and Date : 16/08/2005 ORAL JUDGMENT (Per : HONOURABLE MS.JUSTICE H.N.DEVANI) 1.Heard Mr. Manish R. Bhatt, learned Senior Standing Counsel for theappellant-Revenue and Mr. S.N. Divatia, learned advocate for therespondent-assessee. 1.It is an accepted position that the controversy raised by the questionframed at the time of admission stands concluded by a decision of thisCourt rendered in Tax Appeal No. 208 of 2003 and the cognate mattersrendered on 29.07.2005, 01.08.2005 and 09.08.2005 in the case ofCommissioner of Income-Tax V/s. The Baroda Peoples Co-operative BankLimited. 1.Therefore, it is held that the Tribunal was justified in law inallowing deduction under Section 80P(2)(a)(i) of the Income-Tax Act,1961 on interest income as being attributable to the business ofbanking. The question is, accordingly, answered in the affirmative.The Tax Appeals are, accordingly, dismissed. There shall be no orderas to costs. 1.Registry to place copies of this judgment in all connected matters. Hitesh (D.A.MEHTA,J.) (H.N.DEVANI,J.)