It was ruled by the Kerala High Court that the South Indian Bank is entitled to the deduction envisaged u/s 36(1)(viii) of the Income Tax Act concerning the long-term finance furnished by it for the construction and purchase of houses in India for residential purposes. The appellant-bank/assessee South Indian Bank Ltd is in the business of furnishing housing loans for the purchase of the construction of houses and had been receiving the advantage of the deduction mentioned u/s 36(1)(viii) in the years before the amendment. The disallowance was derived as…