COMMISSIONER OF INCOME TAX Vs. MADRAS PROVINCIAL CO OPERATIVE BANK LIMITED

JUDGEMENT

(1.) THE Judgment of the Court was delivered by the Honble the Chief Justice.

(2.) THE assessee here is the Madras Provincial Co-operative Bank, Limited, a Society registered under the Co-operative Societies Act, 1912, and the Madras Co-operative Societies Act, 1932. In the year of account, 1938-39, the assessee received in interest on tax-free securities the sun of Rs. 69,975. By reason of the second proviso to Section 8 the assessee is entitled to deduct this sum when calculating the amount of income on which income-tax is payable. the exemption does not apply in respect of super-tax. Section 16 (1) (a) states that in computing the total income of an assessee any sums exempted under the second and third provisos to Section 8 shall be included.