2021 (8) TMI 225

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....39; for short). The subject matter of the appeal pertains to the Assessment year 2010-11. The appeal was admitted by a bench of this Court on the following substantial questions of law: "(i) Whether the Tribunal was justified in law in not allowing deduction of Rs. 6,30,553/- under section 36(1)(viii) of the Act being profits derived from eligible business on the facts and circumstances of the case. (ii) Whether the Tribunal was justified in law in not deleting the income of Rs. 1,89,01,179/- being alleged accrued interest income on non-performing assets on the facts and circumstances of the case. (iii) Whether the Tribunal was justified in law in not following the binding decision of the Jurisdictional high court in the case of the C....

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....ified entity as provided in sub Clause (iv) of Clause (a) to Explanation to Section 36(1)(viii) and development of housing in India is an eligible business by virtue of sub Clause c of Clause (b) to Explanation to Section 36(1)(viii) of the Act. It is also urged that Section 36(1)(viii) is a beneficial provision and has to be liberally construed. It is also submitted that assessee being a co-operative bank is entitled to deduction of 20% of the profits arising out of long term finance, which is provided for development of housing in India. It is also submitted that interest pertaining to Non-Performing Assets (NPA) cannot be recognized as income till it is actually received. It is contended that the tribunal erred in adjudicating the issues....