Law:

Section:

JUDGMENT Dr. Manjula Chellur, CJ. - In all the above appeals since the common questions of law are involved, they are heard and disposed of together. The following substantial questions of law arise for consideration in these appeals : "1. Whether the Income-tax Appellate Tribunal was correct in holding that appellants-assessees were not entitled to deduction of 10 per cent. of the aggregate average advances made by its rural branches under section 36(1)(viia) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the above cases, the Income-tax Appellate Tribunal was correct in holding that the definition of rural branch in Explanation (ia) to section 36(1)(viia) is applicable to co-operative banks ? 3. Whether, on the facts and in the circumstances of the above cases, the Income-tax Appellate Tribunal was correct in holding that the definition of the term 'banking company' in section 5(c) of the Banking Regulation Act covers a co-operative bank, which is separately defined in section 5(cci) of the said Act ?" 2. All the above appeals are directed against the order of the Appellate Tribunal. It is clear from substantial questions of law stated above what exactly is the dispute. Admittedly, appellants-assessee are co-operative banks having its registered offices at the addresses mentioned in the cause title and they have several branches spread all over the State of Kerala. What we understand from the contentions raised by appellants-assessees is that though sub-clause (a) of clause (viia) of section 36(1) of Income-tax Act (for short "the Act") particularly refers to co-operative bank, but under the Explanation, while defining rural branch, it does not refer to co-operative bank, therefore, irrespective of the Explanation of rural branch, they are entitled to claim deduction of an amount not exceeding 10 per cent. of the aggregate average advances made by them. The Assessing Officer and other two appellate authorities opined that the appellants-assessees are entitled to claim deduction in respect of bad and doubtful debts with the restriction of 7.5 per cent., of the total income. They further opined that the appellants-assessees…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492