D.b. Income Tax Appeal v. M/S.jaipur Central Co-Operative Bank Ltd

1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH, JAIPUR D.B. INCOME TAX APPEAL No.237/2012 Commissioner of Income Tax-I, Jaipur (Raj.) vs. M/s.Jaipur Central Co-operative Bank Ltd. DATE OF JUDGMENT : 27[th] August, 2012 HON'BLE THE CHIEF JUSTICE MR.ARUN MISHRA'HONBLE MR. JUSTICE NARENDRA KUMAR JAIN-I Mr.J.K. Singhi Sr. Counsel assisted byMr. Anuroop Singhi & Mr. O.P. Pareek, for appellant. Heard. The question raised in this appeal is that only7.5% allowance is admissible to the Cooperative Bank not10% as allowed as per the provision contained in Section 36(1)(viia) of the Income Tax Act, 1961 (hereinafter referred toas 'the Act of 1961'). Provision contained in Section 36(1)(viia) of the Act of 1961 is quoted below :- “(a) a scheduled bank [not being a bankincorporated by or under the laws of acountry outside India] or a non-scheduledbank [or a co-operative bank other than aprimary agricultural credit society or aprimary co-operative agricultural and ruraldevelopment bank], an amount [notexceeding seven and one-half per cent] of thetotal income (computed before making anydeduction under this clause and Chapter VIA)and an amount not exceeding [Ten] per centof the aggregate average advances made bythe rural branches of such bank computed inthe prescribed manner.” The definition of rural bank has been given in Explanation (ia), the same is also quoted below :- 2 “(ia) “rural branch” means a branch of ascheduled bank [or a non-scheduled bank]situated in a place which has a population ofnot more than ten thousand according to thelast preceding census of which the relevantfigures have been published before the firstday of the previous year”. It is apparent that when the population wherebank is situated was within the category of rural area i.e. notmore than ten thousand, entitlement is of 10%. Thus, 10%allowance has been rightly granted by the CIT(A). In view of the aforesaid, the appeal of theDepartment has rightly been dismissed by the ITAT. Orders ofCommissioner of Income Tax (Appeal) and Income TaxAppellate Tribunal are found to be in accordance with law. No substantial question of law is involved in the appeal. The appeal is dismissed. (NARENDRA KUMAR JAIN-I),J. (ARUN MISHRA),CJ. SanjayS.No . “All corrections made in the judgment/order have beenincorporated in the judgment/order being emailed.” Sanjay Solanki JUNIOR PERSONAL ASSISTANT.