2026 (2) TMI 317

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....rect in deleting the addition made on re-computation of allowable deduction u/s 36(1)(viia)(c) and 36(1)(viii) of the Act aggregating to Rs. 12,16,83,000/- without appreciating the facts that the said deduction were computed in accordance with the judgement of Hon'ble ITAT Delhi in the case of Rural electrification Corporation Ltd. vs. Addl. CIT. Range- 15 Delhi (2009) 34 SOT? 2. Whether deduction available to assessee u/s 36(1)(viia)(c) has to be reduced from profits derived from business providing long-term finance computed under head "profit and gains or business or profession" for the purpose of computing deduction available u/s 36(1)(viii) of the Act. 3. That the department craves to add or amend the grounds of ap....

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....he same being against the provisions of section 36(1)(viia)(c) of the Act which stipulates calculation of total income for the purpose of the said section before making any deduction under the said clause and chapter VI-A only. Therefore, as a natural corollary, the total income so computed must be done so after taking into account the deduction claimed u/s 36(1)(viii) of the Act, if any. Pursuantly, your honour proposes to subtract the said deduction claimed u/s 36(1) (viii) of the Act and recompute the total income on which deduction u/s 36(1)(viia) (c) of the Act may be claimed, the same coming out to be Rs. 4298.81 lakhs. In this regards, it is submitted before your honour that the said allegation is factually incorrect and inv....