Section 32AB deduction for bank lockers allowed where the strong room was separate from office premises.

Deduction under section 32AB was treated as available for safe deposit lockers installed in a bank's segregated strong room. The strong room was kept apart from the administrative office area, used only for locker operations, and aligned with banking guidelines requiring lockers to be located in a separate strong room. On those facts, the strong room was not regarded as part of the office premises, so the statutory benefit could not be denied on that basis. The disallowance was reversed in favour of the assessee.

---

---

Issues: Whether deduction under section 32AB of the Income-tax Act, 1961 was allowable in respect of safe deposit lockers installed in a segregated strong room of the bank.

Analysis: The assessee, a scheduled bank, installed the lockers in a strong room kept apart from the administrative office area and meant only for locker operations. The place was treated as a segregated area where no administrative work was carried on, and the arrangement accorded with banking guidelines requiring lockers to be located in a separate strong room. On these facts, the strong room could not be regarded as part of the office premises so as to deny the statutory benefit.

Conclusion: The deduction under section 32AB was allowable and the disallowance was reversed in favour of the assessee.

---