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2011 (3) TMI 906 - ITAT, NEW DELHIAddition - Rental income - Revised return - Assessing Officer has accepted the claim of the assessee in the subsequent year that the rental income from this property does not belong to the assessee although the property in question was registered in the name of the buyer after May, 2006 - Held that: on account of rental income of Rs.4,63,388/-, the assessee is getting deduction of 30% u/s 24 and hence this tax liability is going down to this amount to Rs.1,09,184/- whereas the consequent relief from short term capital gain will be on the full amount of Rs.4,63,388 - if this amount has been declared as income by that party, than the same should not be added in the hands of this present assessee to avoid multiple consequential rectifications without any tax gain to the revenue and also because the revenue has accepted this claim in next year - Decided in the favour of assessee by way of remand Regarding disallowance of interest paid at Rs.2,51,507 - Held that: the assessee has earned interest income for one month only on this basis that the bank has credited interest up to 31.1.2006 only on 4.2.2006 although there was credit balance after that also up to 31.3.2006 - , when the interest bearing borrowed funds have been utilized by the assessee for earning interest income which is taxable under the head income from other sources, deduction on account of full payment of interest is allowable to the assessee and it cannot be restricted to the extent of actual interest income only - Decided in the favour of assessee
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