Case Law Details
ACIT Vs PNB Housing Finance Ltd. (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), New Delhi bench consisting of Anil Chaturvedi, Accountant Member and Narender Kumar Choudhary, Judicial Member granted relief to Punjab National Bank Housing Finance Limited and Confirmed the order of Commissioner of Income Tax of computing rebate under Section 36(1)(viii).
The assessee, Punjab National Bank Housing Finance Limited is an approved housing finance company and a subsidiary company of Punjab National Bank. Assessee filed its original return of income for A.Y. 2016-17 on 29.11.2016 declaring total income of Rs. 479,67,01,950/-. The return of income was later revised on 28.03.2018 declaring total income at Rs.479,67,01,950/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 13.12.2018 and the total income was determined at Rs.484,79,15,150/-. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who allowed the appeal of the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal before the Tribunal.
The assessee worked out the income from eligible business (i.e., profit from Long Term housing loan at Rs.291,71,23,780/-). The assessee thereafter applying 20% to the income from eligible business worked out the amount of Rs.58,34,24,760/- being eligible for deduction u/s 36(1)(viii) of the Act. It was further submitted that amount transferred to Special Reserve was Rs.58,40,00,000/- as against the amount eligible for deduction u/s 36(1)(viii) of the Act of Rs.58,34,24,760/-, the assessee has claimed the deduction as per the provisions of the Act. It was further submitted that on identical issue in earlier years, the issue has been decided by the CIT(A) in assessee’s favour.
The CIT while deciding the issue in favour of the assessee has noted that the issue of computation of rebate u/s 36(1)(viii) of the Act has been subject matter of appeal from A.Y. 1998-99 to A.Y. 2012-13 and every year the CIT has decided the issue in favour of the assessee. He also noted that in A.Y. 2014-15, CIT(A) by following the order of CIT(A) for A.Y. 1998-99 to A.Y. 2012-13 had decided the issue in favour of the assessee. He therefore following the decision of his predecessor, directed the deletion of the addition of Rs.5,12,13,197/-.
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