JCIT(OSD), RANGE-10, NEW DELHI , CR BUILDING ITO vs. RURAL ELECTRIFICATION CORPORATION LTD. , KASTURBA NAGAR
What did the Tribunal hold?
The Tribunal held that processing fees and upfront charges received by the assessee engaged in long-term finance business have a direct nexus with that business and are eligible for deduction under Section 36(1)(viii). The court referenced High Court and AAR rulings supporting this view.
What were the facts?
The assessee, REC Limited, claimed deductions under Section 36(1)(viii) of the Income Tax Act for processing fees and upfront charges related to loans. The Assessing Officer disallowed these deductions, arguing that the income was not derived from long-term finance business as some loans were repaid before five years.
What were the issues?
Whether processing fees and upfront charges related to loans are income derived from the long-term finance business for the purpose of deduction under Section 36(1)(viii).
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(5)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Pandian Chemicals Ltd. v. CIT353 citing129 Taxmann 539 · 2003 · SC
- National Organic Chemical Industries Ltd. v. Collector of Central Excise (Bom)14 citing106 STC 467 · 1997 · SC
- CIT v. Weizmann Homes Ltd.11 citing33 Taxmann.com 171 · 2013 · HC
- Tourism Finance Corporation of India v. JCIT, Spl. Range6 citing31 SOT 495 · 2009 · ITAT
- 308 ITR 3215 citing308 ITR 321
Heard together (6 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘B': NEW DELHI. BEFORE SHRIS.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER
REC Limited, C/o D-22, Second Floor, South Extension 1, New Delhi – 110 049 ITA No.320/Del/2025 (Assessment Year: 2019-20) VS. ACIT – 10 (O ), Delhi. (PAN :AAACR4512R)
JCIT – 10 (O ), Delhi. ITA No.578/Del/2025 (Assessment Year: 2019-20) VS, Rural Electrification Corporation Ltd., Core-4, Scope Complex, Kasturba Nagar, 7 Lodhi Road, East Delhi 110003 (PAN : AAACR4512R) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Ashwani Taneja, Advocate Shri Shivam Kukreja Advocate Shri Shantanu Jain, Advocate Shri D. Dubey, Advocate Ms. Ria Jain, Advocate REVENUE BY : Ms. Pooja Swroop, CITDR ITA Nos.577& 578/Del/2025 ITA Nos.609& 579/Del/2025 ITA No.579/Del/2025 (Assessment Year: 2021-22) JCIT – 10 (O ), Delhi. VS, Rural Electrification Corporation Ltd., Core-4, Scope Complex, Kasturba Nagar, 7 Lodhi Road, East Delhi 110003. (PAN : AAACR4512R) (APPELLANT) (RESPONDENT) ASSES
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More judgments on Section 36(1)(viii)
- Sundaram Home Finance Ltd., Chennai vs ITO, Corporate Ward-6(1), ChennaiITA 1996/CHNY/2026[2014-15]Status: Disposed23 Sept 2026AY 2014-15
- Sundaram Home Finance Limited, Chennai vs CIT, ChennaiITA 1778/CHNY/2026[2016-17]Status: Disposed23 Sept 2026AY 2016-17
- Sundaram Home Finance Limited, Chennai vs CIT, ChennaiITA 1777/CHNY/2026[2015-16]Status: Disposed23 Sept 2026AY 2015-16
- Bandhan Bank Limited, Kolkata vs DCIT-6(1), KolkataITA 965/KOL/2026[2018-2019]Status: Disposed21 Sept 2026AY 2018-2019
- Dy. Commissioner of Income Tax… vs Small Industries Development Bank of India…ITA 870/MUM/2026[2012-13]Status: Disposed7 Sept 2026AY 2012-13
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