Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 567 - BOMBAY HIGH COURT

2015 (12) TMI 567 - BOMBAY HIGH COURT - TMI - Entitlement for deduction u/s 36(1) (viii) - Tribunal was correct in its opinion that the Respondent company was in the business of providing long term finance for development of housing in India, thereby making it entitled for deduction u/s 36(1) (viii), when it had in fact stopped the business of providing housing loans from the financial year 2001-02 - Held that:- We find that the impugned order of the Tribunal renders a finding of fact that the R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

elf establish that the Respondent-Assessee is entitled to the Section 36(1)(viii) of the Act.

The finding rendered by the Tribunal in the impugned order is a finding of fact and the Revenue has not been able to show that the finding of fact is in any manner perverse or arbitrary. - Decided against revenue. - Income Tax Appeal No. 2002 of 2013 - Dated:- 24-11-2015 - M. S. Sanklecha And G. S. Kulkarni, JJ. For the Petitioner : Mr. Arvind Pinto For the Respondent : Ms. A. Vissinji a/w Mr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ompany was in the business of providing long term finance for development of housing in India, thereby making it entitled for deduction u/s 36(1) (viii), when it had in fact stopped the business of providing housing loans from the financial year 2001-02." 3. The Respondent-Assessee, is a Housing Finance Company, which filed its returns of income for the Assessment Year 200506 declaring its income at ₹ 28.55 Crores. The Assessing Officer by his order dated 26th December, 2007 passed un .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ection 36(1)(viii) of the Act on reserve created should not be revised as it proceeds on the basis that Respondent-Assessee is in the business of proving long term finance for construction of residential houses. In response, the Respondent Assessee submitted as under : "During the course of assessment, it was submitted that 1HFC has discontinued the business of giving fresh housing loans and the same are disbursed by ICICI Bank. However, we would like to draw your Honour's attention to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

deduction of ₹ 109,000,000/under section 36(1)(viii) @ 40% of its income derived from the business of long term finance from housing computed under the head "Profit and gains from business or profession" before making any deduction under the said clause. The said business income included fee income of ₹ 30.92 crores and interest received from other sources of ₹ 4.64 crores and other miscellaneous income of ₹ 70.71 lakhs. Fee income comprises of processing fees .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

" (emphasis supplied) 5. The Commissioner of Income Tax did not accept the submissions of the Respondent Assessee justifying its claim under Section 36(i)(vii) of the Act. The Commissioner of Income Tax in his order dated 15th March, 2010 held that the Respondent Assessee has discontinued giving fresh housing loans and was merely servicing old loans. Therefore, the Commissioner of Income Tax held that the Respondent Assessee was not in the business of providing housing loans in the subject .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inter alia records that the Schedule VI of the BalanceSheet indicates the following details of the loans and other credit facilities given by it : As at 31st March, 2004 As at 31st March, 2005 Housing loans to Individuals Rs.2280.36 crores ₹ 2355.75 crores Housing loans to Corporate Rs.190.90 crores Rs.27.27 crores Other loans ₹ 11.76 crores ₹ 35.03 crores From the aforesaid facts, the impugned order records that there has been an increase in housing loans during the subject A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version