2014 (10) TMI 1023 - HC - Income Tax

Advances made to rural branches u/s 36(1)(viia) - Deduction of provision for bad debts in terms of Section 36(1)(viia) - basis of classifying Branches of the Bank as Rural Branches and other Branches - Deduction of 10 per cent of the aggregate average advances - Applicability of definition of rural branch in Explanation (ia) to section 36(1)(viia) to co-operative banks - HELD THAT - Tribunal dismissed the appeal following the judgment of this Court in CIT v. Lord Krishna Bank 2010 (10) TMI 860 - KERALA HIGH COURT . The appellant also does not have a case that the principles laid down in Lord Krishna Bank (supra) are inapplicable to this case and instead what is contended is that SLP filed against the judgment in Lord Krishna Bank is pending consideration of the Apex Court. The fact that the SLP is pending does not in any manner dilute the precedent value of the judgment in Lord Krishna Bank's case. Further, yet another Division Bench of this Court has also followed the judgment in Lord Krishna Bank case in Kannur District Co-operative Bank Limited v. Commissioner of Income Tax 2014 (8) TMI 635 - KERALA HIGH COURT . Appeal dismissed.

Summary

The High Court of Kerala dismissed an appeal against the Income Tax Appellate Tribunal's order related to the assessment year 2007-2008. The appeal was based on the judgment in CIT v. Lord Krishna Bank [339 ITR 606]. The appellant's argument regarding a pending SLP against the Lord Krishna Bank judgment was not considered. The appeal was dismissed as the principles from the Lord Krishna Bank case were deemed applicable.