2015 (12) TMI 567

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....r consideration : "(i) Whether on the facts and in the circumstance of the case and in law, the 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." 3. The Respondent-Assessee, is a Housing Finance Company, which filed its returns of income for the Assessment Year 200506 declaring its income at Rs. 28.55 Crores. The Assessing Officer by his order dated 26th December, 2007 passed under Section 143(3) of the Act, determined the appellant's income at Rs. 28.60 crores. 4....

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....he 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 Rs. 30.92 crores and interest received from other sources of Rs. 4.64 crores and other miscellaneous income of Rs. 70.71 lakhs. Fee income comprises of processing fees in respect of loans disbursed during the year, which is a part of the Company's business of crores earned from fixed deposits with banks, Government, securities too forms a part of the housing business as 1HFC as per NHB's regulations which mandates companies to invest in certain securities in order to maintain the statutory liquidity ratio. Thus, these in....

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.... Other loans Rs. 11.76 crores Rs. 35.03 crores From the aforesaid facts, the impugned order records that there has been an increase in housing loans during the subject Assessment Year. Besides, on perusal of the copy of the return filed with a National Housing Bank which was perused by the Tribunal in absolute number, there were 709 new housing loans disbursed during the subject Assessment Year. On the aforesaid facts, the Tribunal has rendered a finding of fact that the Respondent-Assessee was carrying on the business of providing long term finance for development of housing in India. Thus, entitled to the benefit of deduction under Section 36(1)(viii) of the Act as claimed. Therefore, exercise of powers under Section 263 of the A....