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2013 (5) TMI 389 - AT - Income TaxDisallowance of interest on loan – u/s 24 - Loan taken for purchase of flat – As per revenue deduction should not be allowed because the assessee could not co-relate the fact of obtaining loan and using it for the purchase of flat. - Held that:- Appellant furnished balance sheets of the relevant assessment yeas to prove that the loan was taken in the year of purchase of flat and also furnished a confirmation letter, relevant bank statement and pass book to substantiate its claim of having paid the interest to the lenders. The submission made by the assessee in this regard has been simply brushed aside and the disallowance has been made and confirmed in a general way. In view of the foregoing, the authorities were not justified in refusing deduction u/s 24 in respect of interest incurred by the assessee on loan borrowed for purchase of flat. - Decided in favor of assessee.
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