Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 509 - AT - Income TaxDisallowance of interest u/s 24(b) - A.O. has denied the claim on the ground that the assessee has not utilized the borrowed fund in respect of which the interest was paid for the purpose of acquiring or constructing of the property in question - HELD THAT:- A.O. has noted the fact that the borrowed fund was utilized for repayment of the earlier loan. However, there is no finding on the part of the A.O. that whether the earlier loan was taken for the purpose of acquisition/construction of the property in question, therefore, until and unless, this fact is verified that the earlier loan was taken and utilized by the assessee for acquisition/construction of property in question, the claim of the assessee that the borrowed fund was utilized for repayment of the earlier loan taken for the purpose of construction of the property cannot be accepted. Therefore, this issue requires a proper verification of facts regarding the funds utilized by the assessee for the purpose of acquisition/construction of the property in question and in case, the earlier loan was utilized by the assessee for the construction/acquisition of the property then to the extent of such loan utilized for the purpose of construction of the property and repayment of the same by the subsequent loan would be eligible for claim u/s 24(b) of the Act. In absence of the verification of the relevant facts by the authorities below, this issue is set aside to the record of the A.O. for proper verification and readjudication. Alternative plea of deduction u/s 36(1)(iii) - A.O. has denied the claim of the assessee on the ground that this claim was not made in the return of income or in the revised return of income, therefore, the same cannot be entertained - HELD THAT:-There is no embargo for considering the said claim by the appellate authority if all the relevant facts for adjudication of such issue are available on record. CIT(A) ought to have considered and adjudicated this claim. Since, this issue has not been decided by the ld. CIT(A) and the A.O. refused to entertain the same, therefore, the same is set aside to the record of the A.O. for consideration and adjudication. Needless to say, the assessee be given proper and reasonable opportunity of hearing.
|