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2013 (5) TMI 399 - AT - Income TaxPayment of maintenance charges - whether allowable u/s 24 - income from house property - deduction was not allowed by the AO stating that deduction of such charges was not permissible because 30 per cent deduction was allowed under s. 24 which will take care of expenses on account of maintenance - Held that:- The claim of the assessee that those charges were not on account of maintenance but for the facilities provided by the society in respect of use of generator, lift, lighting and common area sweeping etc. has not been rebutted at any stage, therefore, it appears that the assessee was paying the charges to the society for the common area amenities which was deductible from the gross rent received by the assessee. It is also noticed that the assessee had not claimed any separate deduction on account of municipal taxes because the same was included in the impugned charges © 4.40 per sq. ft. per month, therefore, the AO was not justified in holding that the impugned charges paid by the assessee, were on account of maintenance, which were included in the statutory deduction a 30 per cent under s. 24 of the Act. See Sharmila Tagore vs. It. CIT (2004 (6) TMI 591 - ITAT MUMBAI) wherein held that maintenance charges paid to the housing society have to be deducted even while computing annual letting value - In favour of assessee. Interest paid on housing loan - CIT(A) deleted the addition - Held that:- The assessee purchased the house property for a sum of Rs. 1,19,55,353 and the payment was made after raising a loan from HDFC Bank. The assessee raised the loans from HDFC against RBI Bonds maturing in November, 2002 and to get those bonds realized from HDFC Bank, the assessee raised loan from the relatives and IDBI Bank, thus, the subsequent loans were raised by the assessee to repay the original loan raised to purchase the house property, as such, those loans partake the character of original loan as there was direct nexus between the loan and the purchase of the house property, therefore, the interest paid on the loan was deductible u/s 24 from the rental income realized from the house property. CBDT through Circular No. 28, dt.20th Aug.,1969 (F.No. 8/8/69-IT(A-I) stated that if the second borrowing has really been used merely to repay the original loan and this fact is proved to the satisfaction of the ITO, the interest paid on the second loan would also be allowed as a deduction under s. 24(1)(vi). In favour of assessee.
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