Order
1. Delay condoned.
2. Leave granted.
3. 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 under Section 80-P(2)(a)(i) of the Income Tax Act, 1961. This has been so held in Bihar State Coop. Bank Ltd. v. CIT AIR 1960 SC 789, (1960) 3 SCR 58, (1960) 39 ITR 114, CIT v. Karnataka State Coop. Apex Bank (2001) 7 SCC 654, 2001 Supp (2) SCR 35 and CIT v. Ramanathapuram Distt. Coop. Central Bank Ltd. (2009) 17 SCC 620, (2002) 255 ITR 423
4. The principle in these cases would also cover a situation where a cooperative 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.