The question before the High Court was whether the rental income earned by the appellant and assessed as income from house property will qualify for deduction under section 32AB of the Act.  Allowing the appeal the Court held that  it was not the case of the Revenue or the finding of the Tribunal that the assessee had in its accounts not shown rental income as part of the business income. In fact as per the assessment order, these charges had been considered as part of business income but the Assessing Officer had excluded them for the purpose of profits to arrive at the eligible business income for the purpose of section 32AB of the Act. Therefore, so long as the rental income was part of the business income, it would be included in the term eligible business because rental income was not excluded in the definition of eligible business. The rental income earned by the assessee and assessed under the head Income from house property would qualify for deduction under section 32AB of the Act. Accordingly the Court held that the rental income assessed under head income from house property will qualify for deduction under section 32AB of the Act.   (AY. 1987-88)