Assessee-co-operative bank claimed expenses with respect to contribution made towards shortfall in provident fund’s statutory interest rate.  Assessing Officer denied the  claim on ground that assessee is  using this fund to cover up shortfall and pay employees contribution. On appeal the Tribunal held that as per rule 17 under provident Fund Rules any shortfall in maintaining interest rate in provident fund of employees is  responsibility of employer. Since assessee had fulfilled all its statutory liability towards Employees Provident Funds Act, payment made towards maintenance of statutory interest rate was an allowable expenditure. (AY. 2011-12)