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2011 (11) TMI 380 - DELHI HIGH COURTDeduction u/s 36(1)(viii) – eligibility of income earned by way of dividend on redeemable preference shares, interest on bank deposits/FDs (short term deposits), service charges on SDF loans, miscellaneous receipts, interest on loans/advances to employees for deduction – validity of initiation of proceedings by the Assessing Officer u/s 148 - validity of initiation of proceedings under Section 263 - Held that:- Tribunal held that though the aforesaid items of income can be said to be “attributable” to the business of providing long-term finance, that was not sufficient to attract the provisions of Section 36(1)(viii) and that the condition in the Section that the income should be “derived from” the business of providing long-term finance was not satisfied. No substantial question of law arises from the finding of the Tribunal hence appeals in this respect are not admitted. The assessment was reopened within 4 years from the end of the assessment year hence reassessment proceedings were validly initiated. In respect of power u/s 263, it is held that assessment order was erroneous in as much as it failed to take into account the amendment in Section 36(1)(viii) made by the Finance Act, 1985, thereby revisionary powers were rightly invoked by the CIT. - Decided against the assessee.
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