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TMI Blog2014 (2) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed u/s 36(1)(viia) of the IT Act despite the fact that excess deduction of 10% of average advances of rural branch is available to rural branches and as per explanation (ia) below section 36(1)(viia) of the IT Act 'rural branch means a branch of schedule bank or a non schedule bank (and thus rural branch of a cooperative bank is not covered). 3. Facts of the case in brief are that the assessee is a cooperative bank and filed its return of income on 25/09/2010 declaring an income of Rs. 85,98,450/-. During the course of assessment proceedings, the Assessing Officer noticed that the assessee had claimed expenditure under section 36(1)(viia) of the I.T. Act, 1961 (hereinafter referred to as 'the Act' in short). The assessee submitted de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for deduction under section 36(1) (viia) upto deduction of 7 5% on total income and (plus) 10% on aggregate average advances of rural branches. The calculation of claimed deduction has already provided on record at the time of assessment and the submission in support of claim were placed also on record which was not properly appreciated by the learned Assessing officer in their true perspective and there by erred in arriving at wrong conclusion. The addition made by disallowance of part of deduction claimed by the Assessee by the Learned Assessing Officer account of misinterpretation of the overall provision of section 36(1)(viia) is illegal and not in conformity with the law. ln this regards we have to submit that, any co-operative b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee under section 36(1)(viia) was not justified and is not inconformity with the law and on merits of the case, hence deserves to be deleted. We request your goodself to please delete the same in the interest of equity and justice'' 5. The learned CIT(A), after considering the submissions of the assessee, observed that a similar issue has been decided by the ITAT Jaipur Bench in the case of ACIT, Circle-3, Jaipur Vs. M/s. Jaipur Central Co-operative Bank Ltd., Jaipur in I.T.A.No. 817/JP/2012 order dated 07/03/2012 and the ITAT Cochin Bench in the case of The Kannur Dist. Co-operative Bank Ltd. reported in (2012) 147 TTJ (Coch) 744 . He further observed that in the above cited cases, the issue had been discussed in detail and b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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