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TMI Blog2015 (12) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that there is not only an increase in the loans advanced during the subject Assessment Year to individuals but also over 700 new housing loans were sanctioned during the subject Assessment Year as was evident from is statutory returns filed with the National Housing Bank. The aforesaid finding of facts would by itself establish that the Respondent-Assessee is entitled to the Section 36(1)(viii) of the Act. The finding rendered by the Tribunal in the impugned order is a finding of fact and the Revenue has not been able to show that the finding of fact is in any manner perverse or arbitrary. - Decided against revenue. - Income Tax Appeal No. 2002 of 2013 - - - Dated:- 24-11-2015 - M. S. Sanklecha And G. S. Kulkarni, JJ. For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2007 of the Assessing Officer to the extent it allows deduction of ₹ 10.90 crores under Section 36(1)(viii) of the Act on reserve created should not be revised as it proceeds on the basis that Respondent-Assessee is in the business of proving long term finance for construction of residential houses. In response, the Respondent Assessee submitted as under : During the course of assessment, it was submitted that 1HFC has discontinued the business of giving fresh housing loans and the same are disbursed by ICICI Bank. However, we would like to draw your Honour's attention to the fact that 1HFC is still in the business of providing finance for construction of residential houses and continues to source the said loans and service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36(i)(vii) of the Act. The Commissioner of Income Tax in his order dated 15th March, 2010 held that the Respondent Assessee has discontinued giving fresh housing loans and was merely servicing old loans. Therefore, the Commissioner of Income Tax held that the Respondent Assessee was not in the business of providing housing loans in the subject assessment year, so as to be eligible for deduction under Section 36(1)(viii) of the Act. In the above circumstance, the Commissioner of Income Tax held that order dated 26th December, 2007 was erroneous and prejudicial to interest of the Revenue and directed the Assessing Officer to consider the above issue afresh. 6. Being aggrieved by the order dated 15th March, 2010, of the Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the Revenue is that as the Respondent-Assessee itself had in its reply to the Commissioner's Notice dated 21st April, 2003 under Section 263 of the Act has stated that they had discontinued giving the fresh housing loans and were merely servicing old loans. It thereafter states that it is still in the business of providing finance for construction of residential houses. In fact, Mr. Pinto submitted that there was a contradiction in the Respondent-Assessee's reply. Thus, it is submitted that the Respondent Assessee is not entitled to claim the benefit of Section 36(1)(viii) of the Act. 8. We find that the impugned order of the Tribunal renders a finding of fact that the Respondent-Assessee during the subject Assessment Ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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