2022 (9) TMI 1719

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....(A) has erred in accepting the weighted average method adopted by the assessee instead of arriving at actual interest income by aggregating actual rate of interest and arriving at interest income earned under both the business segments. 2. Whether in facts and circumstances of the case, the ld. CIT(A) has erred in not enquiring about the average tenure of advancing loans under both the business segments instead of merely accepting the submission of the assessee. 3. Whether in facts and circumstances of the case, the ld. CIT(A) has erred in not arriving at correct/true allocation of interest expenditure to both the business segments by following average rate of interest instead of weighted average method." 3. The assesse....

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....oan segment in order to avail higher deduction u/s 36(1)(viii). The AO was of the view that housing loans are for a longer duration fetching lesser rate of interest and requires more funding that the loans against property, which are loans at a higher rate of interest and comparatively lesser period. 4.4 The Ld. AR has contended that the loans in both business segments i.e. housing loans and loans against property, [income not entitled to claim deduction u/s 36(1)(viii)] are of same duration and the rate of interest charge is almost similar. It is stated that the company maintains separate accounts of income from housing loans and loan against property. The Ld. AR has further stated that ledger accounts were filed before the AO dur....