The High Court noted that the appellate authority ought to have exercised its powers under Section 107(12) and called for the reconciliation statement before arriving at a final decision rather than dismissing it

The tribunal referred to the earlier Larger Bench ruling in the Repco Home Finance case and subsequent decisions, which clarified that foreclosure charges are not consideration for any taxable service.

The Tribunal has rightly affirmed the conclusion arrived at by CIT(Appeals) in deleting the tax demand relatable to difference between 20% and the actual tax rate on which tax was deducted by the respondent assessee in terms of the relevant DTAAS.