- (1.) This civil appeal is filed by the assessee. Assessee is a Non Banking Finance Company. This civil appeal concerns assessment year 1998-99. Assessee had filed its return of income for assessment year 1998-99 for total income of Rs. 50,38,16,950/-. The substantial questions of law which arise for determination in this civil appeal are as follows: "1. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the appellant is not entitled to deduction of the 'provision' made in respect of Non Performing Assets which are considered irrecoverable 2. Whether the Appellate Tribunal was justified in not appreciating that the provision made in respect of Non Performing Assets if not allowable as a bad debt is allowable as a business loss 3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in treating the amount of Rs. 36,47,585/- collected as contingent deposit as Income of the Appellant -
(2.) At the outset, Shri Preetesh Kapur, learned counsel appearing for the assessee, fairly stated that questions 1 and 2 have been answered by this Court in favour of the Department vide judgment dated 11.01.2010 in the case of Southern Technologies Ltd. v. Joint Commissioner of Income Tax, 2010 320 ITR 577).
(3.) The only question which this Court is required to answer is whether the Tribunal was right in treating the amount of Rs. 36,47,585/- collected by the assessee as contingent deposit, as income of the assessee under Section 28 of the Income Tax Act, 1961;