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TMI Blog2014 (2) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... led bank” – thus, a Co-operative bank would be classified as a “non-scheduled bank” for the purpose of sec. 36(1)(viia) of the Act – Decided against Assessee. - I.T.A. No. 200/Coch/2013 - - - Dated:- 16-8-2013 - Shri N. R. S. Ganesan, JM And B. R. Baskaran, AM,JJ. For the Petitioner : Shri Anas Muhammed Shamnad R, Adv. For the Respondent : Shri K. K. John, Sr. DR ORDER Per B. R. Baskaran, Accountant Member: The assessee has filed this appeal challenging the order dated 18-02-2013 passed by the Ld. CIT(A)-V, Kochi and it relates to the assessment year 2009-10. 2. The solitary issue urged in this appeal is whether the Ld. CIT(A) was justified in confirming the disallowance of deduction claimed u/s. 36(1)(viia) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Co-operative Bank Ltd., referred supra. The relevant observations made in that case are extracted below: 5. We have heard the rival contentions and carefully perused the record. As submitted by Ld D.R, the issue under consideration was dealt by this bench of Tribunal in the case of The Kannur Dist. Co-op Bank Ltd, referred supra. For the sake of convenience, we extract below the relevant observations made in the above said case:- 6. With regard to the interpretation of the word Place for the purpose of ascertaining rural branches, it was submitted by Ld D.R that the orders passed by the ITAT, which were relied upon by the Ld CIT(A), have since been reversed by the Hon ble Kerala High Court. The Ld D.R also placed before us the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue village. Therefore, in our view, the finding of the Tribunal that place referred to in the definition is the Ward of a local authority like Panchayat or Municipality is incorrect and in our view, a rural Branch has to be always in rural areas and the place referred can easily be taken as a Village. Several Wards may come within a village, whether it be in Corporation, Municipality or Panchayats. There can be no Village in a Municipal or Corporation area where the population is less than 10000. So much so, rural Branches are such of the Branches located in a Village where the population in the Village as a unit is less than 10000. We, therefore, allow the appeal on this issue by reversing the order of the Tribunal and by restoring t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. Accordingly, the Ld A.R contended that the definition of Rural branch does not cover a Co-operative Bank and hence the ordinary meaning given to the rural branch by the regulatory authorities should be taken into account. Accordingly the Ld A.R contended that the decision of Hon ble Kerala High Court in the case of The Lord Krishna Bank Ltd, supra also does not apply to the assessee herein, since it is a co-operative Bank. Accordingly it is prayed that the matter requires re-examination at the end of AO. 7.2 We notice that the Ld A.R has taken this alternative plea, which is entirely a new one that too raised for the first time, without filing an additional ground along with a petition praying for its admission. This plea has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation to subsection (4) of section 80P. In the Explanation to sub-section (4) of section 80P, the Co-operative bank is defined as under:- Co-operative bank and primary agricultural credit society shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949) . 8.1 Since the definition of non-scheduled bank and Co-operative Bank refer to the Banking Regulation Act, 1949, we have to refer the said Central Act in order to understand their respective meaning. We have also gone through the said Act. For understanding the meaning of nonscheduled bank we have to refer to clause (c) of section 5 of the Banking Regulation Act, 1949, which reads as under:- Sec. 5(c): banking company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a non-scheduled bank for the purpose of sec. 36(1)(viia) of the Act. 8.2 In view of the foregoing discussions, we are of the view that the decision rendered by Hon ble Jurisdictional Kerala High Court in the case of The Lord Krishna Bank Ltd., supra, shall apply to the assessee herein. Accordingly, we reject the alternative plea raised by the assessee. Thus, the appeal of the revenue stands allowed . Since the facts prevailing in the instant case are identical with the case of the Kannur Dist. Co-op Bank Ltd, referred supra, we are inclined to follow the said decision. We notice that the decision reached by the Ld CIT(A) is identical with the view taken by the Tribunal. Accordingly, we uphold his decision. 5. We have already no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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