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2019 (4) TMI 2052 - AT - Income TaxDisallowance of proportionate interest u/s 24(b) - Loan borrowed for acquisition of property - AO was of the opinion that the transaction of the assessee is in the nature of slump sale and referred to the assets and liabilities whereas the learned AR heavily contested that it is in the nature of take over of the asset along with liability and does not come under the purview of slump sale - HELD THAT:- We are of the considered opinion that the assessee has been claiming interest in the earlier assessment year and it was accepted in the scrutiny assessment and there is no dispute with respect to acquisition of asset availing loan and payment of interest. The acquisition made by the assessee cannot be considered as slump sale as the assessee has discharged the liability of other sister concern and obtained the property on loan which is not disputed by the Revenue. Since the assessee has been offering income from house property and claiming interest income from earlier years which is not disputed and accepted by the revenue and fits into legal proposition of claim u/s 24(b) of the Act. Accordingly, we set aside the order of the CIT(A) on this ground and direct the AO to allow the claim made by the assessee as deduction from income from house property. The ground of appeal of the assessee is allowed. Processing fee and pre-payment charges to be allowed u/s 24(b) - HELD THAT:- We found the submissions of the learned AR supported with judicial decisions PENTAGRAM PROPERTIES PRIVATE [2011 (8) TMI 1212 - ITAT MUMBAI] AND PEEPUL TREE PROPERTIES P. LTD. [2016 (8) TMI 860 - ITAT MUMBAI] are realistic. The learned AR also substantiated with judicial decisions which cannot be overlooked. Accordingly, following the ratio of the above decisions, we are inclined to allow the grounds of appeal of the assessee on this ground and direct the AO to allow deduction of pre-closure charges on term loan and processing charges of new term loan u/s 24(b) of the Act.
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