Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 234 - AT - Income TaxDisallowance of Interest Nexus between interest received and interest paid - Held that:- Following assessees own case for A.Y. 2005-06 - Consistent with the past practice and in the absence of any justification for the departure, the interest claim ought to have been allowed Following CIT vs. Sridev Enterprises [1991 (1) TMI 52 - KARNATAKA High Court] - If interest has been allowed as a deduction in the earlier years and there is no evidence to show that there were fresh borrowings during the relevant accounting year, the interest paid by the assessee on the opening balance of the creditors account should normally be allowed as a deduction Decided in favour of assessee. Income from house property - Annual rental value Held that:- the annual rateable value as fixed by the Municipal Corporation Act, is taken as annual value because the same is based on the cost of construction of the building - Annual Municipal value if available itself could be the annual letting value and if the actual rent received or receivable is more than the annual Municipal value, then the actual rent may be taken as the annual value The authorities were not justified in recalculating the annual letting value of the Capri and Kodinar flats owned by the assessee, and which were vacant during the entire previous year - The assessee has furnished the certificates given by the Brihanmumbai Mahanagarpalika showing the rateable value of the flats Decided in favour of assesse. Valuation of rights Held that:- The Assessing Officer was not given an opportunity by the CIT(A) before admitting the additional evidence and, therefore, the matter be restored to the file of the CIT(A) The issue was restored for fresh decision.
|