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TMI Blog1985 (7) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... d municipal taxes and insurance. Shri Inamdar stated that this amount has not been allowed under business also. Accordingly we direct the ITO to allow collection charges as per law if the same has not already been allowed. 3. The second point in appeal is regarding the treatment to be given to the locker rent of Rs. 7,752 for the purpose of s. 80P. The ITO held that s. 80P (2)(a)(i) exempts income only from banking or providing credit facilities to members. The locker rent received by the assessee does not answer the description of banking or provision for credit facilities mentioned in s. 80P. In appeal the AAC relied on the banking regulation Act. 1949 and confirmed the decision of the ITO. 4. Shri Inamdar submitted that the Banking Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and advances, the receiving of all kinds of bonds, scripts or valuation on deposit or for safe custody or otherwise the providing of safe deposit vaults the collecting and transmitting of money and securities." On the basis of the above Shri Inamdar contended that even safe deposit vault is covered under the above provision. According to Shri Inamdar the activity of provision of locker rent is intimately and inextricably connected with the business of banking or provision of credit facilities to members. Shri Inamdar laid particular stress on the words "attributable" referred to in s. 80P. As lockers go with banking business, the income therefrom is attributable to the business of banking. 5. Relying on CIT MP-I, Bhopal vs. Dhar Central C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hold that even though the activity providing locker facilities is inextricably tied to banking, it is not part of banking itself. For this purpose in absence of definition in the taxing statute, we have to look for definition in the Banking Regulation Act, 1949. There is no scope for examining the actual realities in the light of commercial parlance or practice. The activity of providing lockers does not fall under "banking or under provision of credit facilities". Lockers are available to all on fulfilment of the conditions regarding payment, etc. The locker-holder need have any in link with the banking activities. The locker hiring activity is only because of the permissive cl. 6(1)(A) of Banking Act. In this respect (1983) 149 ITR 438 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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