TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 1710
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....erence to the definition of rural branch in the Explanation under Section 36, at (i)(a). The issue is no longer res integra and is covered by a decision of a Division Bench of this court. It is hence, the question framed on admission by another Division Bench, was as follows: "Whether the decision of the Division Bench in Kannur District Co-operative Bank Lt., v. Commissioner of Income Tax (2014) 365 ITR 343 (Ker.) requires to be reconsidered ?." 2. We hence would not refer to any facts. If there is a reconsideration possible, then, we have to refer it to a Larger Bench. If not, the appeal has to be simply rejected. We have to notice the history of the deductions as available to Co-operative Banks. All Co-operative Banks were granted ded....
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....the population, even a branch existing in a ward within a Panchayat or Municipality could be granted rural banks status, going by the definition of 'Rural Branch'. The Division Bench looked at the definition of 'Rural Branch' which indicated the citus for determination of population as "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". A place with reference to rural area as referred to in the census report was found to be a Revenue Village with definite survey boundaries. The legislature having adopted population as the basis for classification of rural branches, with specific refer....
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....al 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] per cent of the aggregate average advances made by the rural branches of such bank computed in the prescribed manner. xxx xxx xxx xxx Explanation- [(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. 7. We notice that when making amendments in 2007; confining the benefit under Section 80 P to certain typ....
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....ntitled to such benefit. 8. A reading of clause (a) under section 36 (1)(viia) would dispel any doubts regarding such inclusion. The deduction in respect of any provision for bad and doubtful debts to the extent of 7½% of the total income is applicable to scheduled banks not being one incorporated outside India, a non scheduled bank or a co-operative bank other than those specified. Under the second limb the deduction is to the extent of 10% of the aggregate average advances by the rural branches of such bank. The rural branches of the category of banks referred to in the first limb would be entitled under the second limb. We agree with the decision and there is no reason for us to take a different view in the present case especiall....