TaxTMI 
TaxTMI 
2025 (1) TMI 1667
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....e case are that the assessee company filed its return of income for the A.Y.2017-18 on 31.10.2017, admitting total income of Rs. 48,60,36,700/-. During the course of assessment proceedings, the Assessing Officer noticed that the assessee claimed deduction u/s 36(1)(viii) of the Income tax Act, 1961 ("the Act") for an amount of Rs. 59,88,65,076/-, being 20% of profits derived from the business of providing long term finance. The Assessing Officer called upon the assessee to file its relevant computation with supporting evidences. In response, the assessee has filed computation of eligible profit derived from providing long term finance to eligible business. The Assessing Officer after considering the relevant submissions of the assessee obse....
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....remium on premature closure of accounts, on the ground that the assessee could not bring anything on record, to prove that the said income is part of main business activity of providing long term finance to eligible business. Therefore, directed the Assessing Officer to recompute the eligible deduction u/s 36(1)(viii) by including amount of recovery from bad debts written off and excluding service charges, upfront fee and sale of forms and premium on premature closure of accounts. 4. Aggrieved by the order of the Ld.CIT(A), the assessee is now in appeal before the Tribunal. 5. The learned counsel for the assessee submitted that the Ld.CIT(A) is erred in sustaining the additions made towards disallowance of deduction claimed u/s 36(1)(....
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....eported by the assessee. The Ld.CIT(A) has allowed relief on other income being recovery of bad debts written off and the Revenue has accepted the finding of the Ld.CIT(A). In so far as other incomes like sale of application forms, upfront fee / commitment charges, service charges and premium on pre mature closure of accounts reported under other income is not proved with relevant evidences that the said income is part of main business activity of providing long term finance to eligible business, which is evident from the findings of the Ld.CIT(A). Therefore, there is no error in the findings of the Ld.CIT(A) in upholding the disallowance of deduction u/s 36(1)(viii) in so far as exclusion of other income is concerned. However, if at all, t....
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....ofit for the purpose of computing deduction u/s 36(1)(viii) of the Act. The Assessing Officer excluded the total income reported under other income on the ground that other income does not form part of main business activity of providing long term finance to eligible business. The Ld.CIT(A) allowed relief in respect of income reported under the head 'other income' being recovery from bad debts written off account. In so far as service charges, upfront fee, sale of forms and premium on pre mature closure of accounts, the Ld.CIT(A) upheld the reasons given by the Assessing Officer for exclusion from the eligible profit on the ground that no evidence has been filed to prove that the said income is derived from the main business activity of pro....
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....the nature of income derived from providing long term finance to eligible business. Therefore, we are of the considered view that the Assessing Officer / Ld.CIT(A) erred in excluding other income for the purpose of computing eligible profit in terms of section 36(1)(viii) of the Act. 9. Further, the assessee claims that it is following similar method for computing eligible profits for the purpose of section 36(1)(viii) of the Act for earlier assessment years. The assessee further claimed that the Assessing Officer has disallowed other income for earlier financial years also and the same has been challenged by the assessee before the Ld.CIT(A) and the Ld.CIT(A) allowed the claim of the assessee for the A.Y.2009-10. The Revenue has challen....