Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1943 - AT - Income TaxIncome from house property - addition being deemed rental income for a let out property which has remained vacant - ALV determination - disallowing vacancy disallowance claimed by the assessee - HELD THAT:- CIT(A) has wrongly relied on the judgment of the Hon’ble Andhra Pradesh High Court in the case of Vivek Jain [2011 (1) TMI 897 - ANDHRA PRADESH HIGH COURT] This judgment was prior to the amendment brought in the Act on this issue. In view of the above discussion, consistent with the view taken by the Pune Bench of the ITAT in the case of Shri Vikas Keshav Garud [2016 (7) TMI 942 - ITAT PUNE] we delete this addition. Addition made u/s 2(22)(e) - addition as the account in question is a current account or loan account - HELD THAT:- We find that the accounts of the assessee in the books of M/s. Panchdeep Constructions Ltd. is placed page 11 of the paper book filed by the assessee. A perusal of the same demonstrates that, it is a current account. Entries were passed on the last day of the previous year i.e., 31/03/2013. Even the Director’s remuneration has been credited on the last day of the Financial Year. As per the case of Mr. Purushottam Das Mimanidelete [2014 (12) TMI 801 - ITAT KOLKATA] the addition as the account in question is a current account and it is not a loan account. Moreover, it can be seen that the company M/s Panchdeep Constructions Ltd. received money from the assessee which makes it a commercial transaction of mutual benefit to both the parties and hence outside the purview of Section 2(22)(e) of the Act. Accordingly this ground of the assessee is allowed. Disallowance of interest - assessee’s case is that the Assessing Officer restricted the claim of the assessee of deduction of interest to the extent of income earned by it under the head income from other sources - Whether assessee claims, is factually incorrect as the interest payment is related to income offered under the head income from house property? - HELD THAT:- Computation of income that rental income has been offered to tax under the head income from other sources and has been assessed as such. This, in our view, is not correct. The rental income may have to be brought to tax under the head income from house property if it is rent from a building. The claim for interest may be examined afresh under such circumstances. If the money borrowed is for the purpose of acquisition of property, the deductions should be considered only under the head house property. Accordingly, this issue is restored to the file of the Assessing Officer for fresh adjudication in accordance with law.
|