2024 (7) TMI 1595

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....l in the above order adjudicated various grounds raised by the assessee and the Revenue pertaining to the additions / disallowances made by the Assessing Officer (AO) / CIT(A). The assessee has now raised the MA submitted that the Tribunal while adjudicating Ground No. 2 i.e. Ground No. 2.1 to 2.4, did not give any specific finding with regard to Ground No. 2.4., which pertains to allocation of interest on foreign currency borrowings and provision for contingencies. The relevant ground reads as under - "2.4 The Id. CIT(A) erred in allocating expenses erroneously, arbitrarily and on incorrect assumptions, for the purpose of computing the profits eligible for deduction under section 36(1)(viii) of the Act. He erred in not al....

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....ord. We notice that while adjudicating ground no. 2 which includes ground no. 2.1 to 2.4 specific findings have been given with regard to various categories of income such as Income from Housing Finance for residential purposes for a period less than five years, Income from Housing Finance for non-residential purposes and Income from Temporary requirement of funds. We further notice that we have held that Income from Housing Finance for a period of less than five years and Income from temporary deployment of funds are eligible for deduction under section 36(1)(viii) and that Income from Housing Finance for non-residential purpose would not be eligible for such deduction thereby giving partial relief to the assessee. Vide ground no. 2.4 the ....

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....igible for deduction under section 36(1)(viii) i.e. Income from Housing Finance and the income which ineligible for such deduction i.e. Income from Non-housing Finance. During the course of hearing the bench directed the ld.AR to submit detailed working with regard to the allocation of expenses between Income from Housing Finance and Income from Non-housing Finance and the said working is Annexed as part of this order. Accordingly we direct the AO to reallocate the expenses / costs in the ratio as would be finally determined while giving effect to the directions given in this order with regard the re-characterization of income between eligible and non-eligible business. The AO is further directed to examine the correctness of the workings s....

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....399 382,297,399 Other Fees/Charges Prepayment Charges 40,128,320 40,128,320 Guarantee Fee Income 2,478,427 PSG Fees 60,489,065 2,478,427 60,489,065 2,478,427 60,489,065 APF Fees 136,203 136,203 Dishonoured Cheque Charges 328,859 328,859 Legal Service Income 105,000 105,000 105,000 Draft Agreement Charges 1,300 498,803,679 1,300 422,892,081 4,351,000 71,560,598 75,911,598 3 INTEREST ON DEPOSITS Corporate Deposits 848,853,584 848,853,584 Rent Deposits 6,501,534 6,501,534 COD-Banks/Financial Institutions 42,521,587 42,521,587 IDBI Deposits 66,839 Interest on Bank Deposits 206,107,824 1,104,051,368 66,8....