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2014 (11) TMI 189 - AT - Income TaxDenial of claim u/s 24(b) and u/s 80C - Assessee had claimed loss under the head income from house property by claiming deduction u/s 24(b) of the Act in respect of interest paid for purchase of house property and further deduction u/s 80C was claimed in respect of repayment of loan Held that:- The assessee had purchased the property on 25th day of November 2005 - ICICI Bank disbursed the amount on 31.12.2005 - the loan taken by assessee from ICICI bank cannot be said to be taken for the purpose of purchase of the property as the property was already purchased on 25.11.2005 and full payment of consideration was already paid as is apparent from the copy of the sale deed - deduction can be allowed to assessee only if property was acquired out of borrowed capital - it has been established that loan was not taken for the purpose of acquiring asset as asset was already acquired before disbursement of loan CIT(A) had arrived at the correct conclusion that deduction u/s 24(b) and u/s 80-C cannot be allowed to the assessee. Unaccounted estimated expenses incurred on birthday of his grandson Held that:- Assessee contended that the estimate was made without any basis and without considering that father would have incurred the expenses and moreover relatives from the maternal side would also have contributed to the expenses - The AO has made whole of the addition in the hands of the assessee which is not justified thus, the addition is reduced at ₹ 2.50 lacs Decided partly in favour of assessee. Addition on account of 89 liquor bottles found at the residence of the assessee Held that:- During the assessment proceedings, the assessee had claimed that he is a non drinker and bottles were accumulated over a period of years as part of gifts from friends and relatives and since he was non drinker, the bottles kept on accumulating - he had only purchased 12 bottles for an amount of ₹ 14,400/- which was a small amount keeping in view his withdrawals - since the assessee was staying in a joint family consisting of his son and daughter in law and moreover all bottles cannot be said to have been purchased in one year and the existence of so many bottles can only point out to the fact that these must have been accumulated over a period of time the addition of ₹ 1 lac will meet the ends of justice Decided partly in favour of assessee. Deletion of ₹ 22 lacs out of cash found at the premises - Held that:- CIT(A) had rightly deleted the addition by holding that total cash in hand as a whole as per books of accounts was more than total cash found during survey and there was no unaccounted cash thus, the order of the CIT(A) is upheld Decided against revenue.
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