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2016 (3) TMI 241 - ITAT JAIPURDisallowance of interest on borrowed capital u/s 24(b) - whether property should be let out for claiming deduction of interest? - Held that:- It is evident from the record that the assessee did not offer the amount of rent for which IT is reasonably accepted to let in terms of Section 23(1) of the Act. Besides the assessee has claimed depreciation thereon on the property without using the said flat B-2. Thus the assessee has unjustifiably claimed deduction of interest; on one hand property is treated as business asset and claimed depreciation thereon though disallowed by AO. Even if house property income in terms of Section 23(1) is concerned, no amount has been shown for which property might be reasonably expected to be let. Thus the assessee’s claim has no tenability as neither property is self-occupied nor its reasonable rental ALV is offered for tax and at the same time a claim of deduction of interest is made. Since the assessee has not complied with any of these statutory conditions, the lower authorities have rightly disallowed the proportionate interest wrongly claimed by the assessee as allowable. - Decided against assessee
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