IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. ITA No.210 of 2009(O&M) Date of decision: 01.7.2009 Commissioner of Income Tax I, Chandigarh -----Appellant Vs. M/s Punjab State Cooperative Bank Limited, Chandigarh Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MRS. JUSTICE DAYA CHAUDHARY Present:- Ms. Urvashi Dhugga, Standing Counsel for the revenue. Adarsh Kumar Goel,J. 1. Delay in refilling the appeal is condoned. 2. This appeal has been preferred by the revenue under section 260-A of the Income Tax Act, 1961 (in short, ‘the Act’) against the order of the Income Tax Appellate Tribunal, Chandigarh, Bench ‘B’ dated 21.6.2006 in ITA No.454/Chandi/2005 for the assessment year 2003-04, proposing to raise following substantial question of law:- “Whether on the facts and circumstances of the case, the Hon’ble ITAT was right in law in holding that income earned from banking business with ‘nominal’ ITA No.210 of 2009 members is eligible for deduction under section 80P(2) (a)(i) of the Income Tax Act, 1961?” 3. Learned counsel for the revenue submits that identical issue has already been decided by this Court in Commissioner of Income Tax v. Punjab State Cooperative Bank Limited, (2008) 300 ITR 24 and it has been held that income of the Cooperative Bank towards interest derived from loan advanced to members/nominal members will not be income from other sources but will be income from banking business eligible for exemption under section 80P(2)(a)(i) of the Act. 4. In view of the above, this appeal is dismissed. (Adarsh Kumar Goel) Judge July 1, 2009 (Daya Chaudhary) ‘gs’ Judge 2