Mutuality and Section 57(iii) deduction issues: appeal not entertained on one question, admitted on the remaining two.

Interest income said to be governed by mutuality was treated as covered by binding Supreme Court authority, so that issue was not entertained. The remaining questions on whether deduction under Section 57(iii) of the Income-tax Act, 1961 could be restricted to 7.5% and what portion of that deduction should be allowed were found arguable, and the appeal was admitted only on those two questions. The document records no adjudication on the merits beyond that limited admission.

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Issues: Whether the interest income was governed by the principle of mutuality; whether deduction under Section 57(iii) of the Income-tax Act, 1961 could be restricted to 7.5%; and whether the appropriate portion of deduction under Section 57(iii) should be allowed.

Analysis: The first question was treated as covered by binding Supreme Court authority and was not entertained. The Court found arguable questions on the remaining two questions and admitted the appeal only on those questions.

Outcome: The appeal was not entertained on the first question and was admitted only on the second and third questions.

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