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2018 (4) TMI 704 - AT - Income TaxDisallowance of the interest claimed by way of set of - income from other sources - establishment of nexus - interest income with interest expenses - Held that:- No expenditure can be allowed against the income from other sources, unless it is wholly and exclusively incurred for the purposes of making or earning of such income. As in the present case, no such nexus could be established in respect of the expenditure incurred by the assessee. Further to claim of set off u/s 70(1) against interest income, there has to be a loss under the head income from other sources or any other head of income except capital gain which is not the case of the assessee - Decided against assessee. Deduction claimed u/s 54F - denial of claim by CIT-A as assessee was holding two residential houses in his name, so he is not entitled for the deduction under section 54F - Held that:- The action of the CIT(A) cannot be justified in holding both these properties as residential houses merely on the basis of their location in Jaipur House residential colony, Agra without appreciating the material facts regarding the purpose for which the properties were used; the house no. 273 in particular which was used for business purpose as it was let out by the assessee to M/s Client Technology Ltd. Agra for godown purpose. It is clear that although on the day of transfer of original asset, assessee had in his possession two residential houses i.e. 273, Jaipur House and 293, Jaipur House, however, the house no. 273 was let out to M/s Client Technology Ltd. Agra for business purpose and therefore, assessee is legally entitled for deduction under section 54F of the Act. The property was used by the assessee for business purpose by way of lease out to M/s Client Technology Pvt. Ltd. for commercial purpose of stocking of electronic items duly supported with commercial electricity connection for the period relevant. The ld. DR has not brought on record any material evidence in rebuttal to the contention of the assessee. - Decided in favour of assessee.
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