1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY, BENCH AT AURANGABAD TAX APPEAL NO. 121 OF 2008 The Commissioner of Income Tax-I Aayakar Bhavan, PMT Building, B-Wing, Shankar Seth Road, Swargate, Pune-37. Appellant. versus Ahmednagar Shahar Sahakari Bank Ltd., Navi Peth, Ahmednagar. Respondent ------- Shri Alok Sharma, Asstt. Solicitor General for appellant Shri A. P. Kolte, Advocate for the Respondent. Coram: Smt. Nishita Mhatre & M.T. Joshi, JJ. order reserved on : 03.08 2011 order pronounced on : 12.08.2011. Oral Order (Per: Smt. Mhatre, J.) 01. The question of law raised in this appeal is whether the Income Tax Appellate Tribunal was right in holding that the income derived from sale of securities qualified for for a deduction under Section 80P (2)(a)(i) of the Income Tax Act, when such an activity is not mentioned in the definition of banking contained in the Banking Regulation Act. 02. On perusal of the impugned order dated 8.2.2008, it appears that the ground raised in the Appeal before the Tribunal by 2 the assessee was, whether the Commissioner (Appeals) had erred in confirming the disallowance of interest earned on investment made out of voluntary reserves to the extent of dividend allocation being not eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act as the interest earned on investments out of voluntary reserves is in the course of business of banking. 03. The issue has been answered in favour of the assessee, by the Tribunal. However, this is not the challenge in the tax appeal, as seen from the substantial question of law raised in the tax appeal. 04. Hence, the appeal stands dismissed. (M.T. JOSHI, J.) (SMT. NISHITA MHATRE, J.) pnd/ta121.08