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2013 (1) TMI 260 - ITAT MUMBAIRevision of orders prejudicial to revenue - Jurisdiction u/s 263 of CIT(A) - deduction u/s 36 - Held that:- Persuing the Schedule X filed by assessee it shows that interest income of Rs.197.82 crores was received by the assessee during the year under consideration of which major amount was relating to housing loans given to the individuals and corporate. A copy of return filed by the assessee to NHB is also placed on record and a perusal of it shows that the principal business transacted by the assessee company during the year under consideration was clearly indicated as financing housing loans and sourcing and servicing home loans for ICICI Bank. The details of disbursement of housing loans during the year were also given which shows that 709 new housing loans were disbursed by the assessee during the year under consideration involving total amount of Rs.15.06 crores. Thus it can be concluded assessee’s case are sufficient to show that it was very much carrying on the business of providing long term finance for development of housing in India making it entitled for deduction u/s 36(1)(viii) and there was no error in the order of the AO in allowing such deduction to the assessee in the assessment completed u/s 143(3). Other income on account of fees, interest etc. was not in the nature of income from eligible business entitled for deduction u/s 36(1)(viii) - Held that:- Since there is no discussion in the assessment order passed by the AO u/s 143(3) on this aspect the assessment order suffers from an error to the extent of non-examination of this aspect and the same being prejudicial to the interest of the Revenue, the direction given by the CIT to the AO to the extent that he should examine this limited aspect of assessee’s claim for deduction u/s 36(1)(viii) afresh. Deduction on account of bond issue expenses - Held that:- There is nothing brought on record to show that the claim of the assessee for deduction on account of bond issue expenses was allowed by the AO in the assessment completed u/s 143(3) after making proper and adequate enquiry. There was a failure on the part of the AO to make such enquiry specifically as pointed by CIT in order to ascertain the nature of the said expenses whether capital or revenue, thus the order of the AO was erroneous and prejudicial to the interest of the Revenue on this issue as rightly pointed out by the CIT.
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