TaxTMI 
TaxTMI 
TaxTMI 
2015 (1) TMI 1328
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.... Government of India had furnished return for the assessment year 2003-2004, declaring a total income of Rs. 187,95,13,137/-. They claimed the deduction of Rs. 21,54,50,000/- under Section 36(1)(viiia) of the Income Tax Act 1961 (hereinafter referred to as 'Act' for short). The Assessing Officer found that the claim of deduction under Section 36(1)(viia) of Rs. 10,30,67,133/- was computed by the assessee in respect of population of the places in which the assessee's Rural Banks were situated with reference to the population figures of the Census 1991. But the Assessing Authority took the view that the population figures of the Census 2001 is to be adopted for the purpose. The assessee contended that the Census Data was not publi....
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....vious year and therefore, the authories were not justified in making that as the basis for framing assessment for the assessment years 2003-2004 and 2004-2005. 5. Per contra, the learned counsel appearing for the revenue submitted that the words used as 'published' makes no difference between the provisional population total published and the final population published, as the sole object of the publication is to find out the population as per the last preceding Census and therefore, he submits the impugned orders cannot be found fault with. 6. The facts are not in dispute, which are concerned with the assessment for the assessment years 2003-2004 and 2004-2005. The first day of the previous year for these assessment years would b....
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....Section 36(a), in order to appreciate the said contention. Section 36 of the Act deals with other deductions. Section 36(viia) reads as under: "Section 36(viia) (In respect of any provision for bad and doubtful debts made by) - (a) a scheduled bank [not being a bank incorporated by or under the laws of a country outside India] or a non-scheduled bank [or a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank], an amount [not exceeding seven and one-half per cent] of the total income [computed before making any deduction under this clause and Chapter-VIA] and an amount not exceeding [ten] percent of the aggregate average advances made by the rural branches of ....
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....consecutive assessment years commencing on or after the 1st day of April, 2000 and ending before the of April, 2005] "Explanation to Section 36(1)(viia), Clause (ia), which provides as under: (ia) 'rural branch' means a branch of a scheduled bank {or a non-scheduled bank} situated in a place which has a population of not more than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year' 8. In respect of any provision for bad and doubtful debts made by the scheduled Bank, an amount not exceeding 71/2 percentage of the total income computed before making any deduction under this clause and Chapter VI A and an amount not exceeding 10% of the ....
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....as crossed 10,000 then the scheduled Bank pertains to that village would not be entitled to the deduction of 10,000 to the aggregate average advances towards bad and doubtful debts. The Census figure would be available with the Census Department. It is not possible for the common man or the bank to know what is the Census figure. Therefore, the said provision stipulates that Census figure has to be published. Therefore, it is only after publication of the Census figures one may be able to decide whether it is a rural branch as defined under the Act or not. The last stipulated population necessarily would be with reference to particular date. That day is also prescribed as that date before first day of the previous year. Once the publication....