Loan securitization income can be considered as interest income and hence eligible for deduction under section 36(1)(viii)

DCIT Vs. AIG Home Finance India Ltd. (ITA No. 2167/Mds/2010) Chennai Tribunal dated 5 May 2011 Facts: – The taxpayer was a housing finance company. The taxpayer had claimed deduction under section 36(1)(viii) of the Income-tax Act (ITA) in respect of securitization income earned from the business of long term housing finance. The Assessing Officer (AO) denied the deduction to the taxpayer on the basis that the taxpayer had received the proceeds on loan securitization and not the interest income. The Commissioner of Income-tax (Appeals) allowed the claim of the taxpayer. Aggrieved by the ...