- (1.) IN this appeal, filed under Section 260a of the IT Act, 1961 (hereinafter referred to as "the act"), the appellant has called in question the correctness of the order dt. 18th Dec. , 2002, made in ITA No. 1008/bang/2002 by the Tribunal, Bangalore, reversing the order dt. 12th April, 2002, passed by the CIT (A), Hubli. The only question that arises for our consideration in this appeal is as to whether the respondent-co-operative bank is entitled for deduction under Section 80p (2) (a) (i) of the Act in respect of the interest and dividend income earned by it out of the investment made by it in other banking institutions. It is not in dispute that the respondent is a co-operative bank.
(2.) IN this case, the assessment is of the year 1998-99. The Tribunal on consideration of the material on record has taken the view that the respondent-bank is entitled for deduction under section 80p (2) (a) (i) of the Act in respect of the interest and dividend earned by it out of the investment made, by it in other banking institutions.
(3.) HOWEVER, Smt. Madhumita Bagchi, learned counsel appearing for the appellant, challenging the correctness of the impugned order submitted that the finding recorded by the Tribunal is erroneous in law.;