MEHSANA DISTRICT CENTRAL COOP. BANK LTD vs INCOME TAX OFFICER, GUJARAT — C.A. No. 7448/2000

Case Summary: Mehsana District Central Coop. Bank Ltd. v. Income Tax Officer, Gujarat Date: August 30, 2001 Outcome: The Supreme Court allowed the civil appeals. For assessment years 1988-89 to 1994-95, the Court ruled in favor of the bank on deductions under Section 80P: (1) interest income on statutory reserves is deductible; (2) safe deposit vault income qualifies as banking business income and is deductible; (3) regarding voluntary reserves, the matter was remanded to the Commissioner (Appeals) for fresh decision with opportunity for evidence. No costs awarded. This case analysis is maintained by casestatus.in based on publicly available court records.