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2022 (5) TMI 1263 - AT - Income TaxDisallowance of deduction u/s 36 (1) (viii) in respect of special reserve created @ 20% of the profits derived from eligible business of providing long-term finance for development of housing - disallowance was made because of the view expressed by the revenue that assessee he has not provided long-term finance to development of housing projects, but provided only to construct or purchase of residential house - HELD THAT:- Axiomatically it means that assessee does provide housing finance for construction of residential purposes. What needs to be established is that the finances provided by assessee is for eligible business as defined under clause (b) to the explanation to section 36 (1) (viii) of the act. Order query being raised by the bench both sides agreed for the issue to be remanded in order to verify the same in accordance with the document/evidence is filed by assessee. In the interest of justice we direct the Ld.AO to verify the details filed by assessee in accordance with the relevant provisions of the claim. On satisfaction of the necessary conditions, the deduction deserves to be granted to assessee. Assessee is directed to file all requisite information/details in support of its claim. Addition of interest received on loans and advances - HELD THAT:- It is not the case of revenue that the interest is actually received. Admittedly, assessee has shown it as a non-performing asset though it has accrued but not actually received. Respectfully following the above you we direct the Ld.AO to delete the addition made in the hands of assessee. Assessee appeal allowed.
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