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2021 (9) TMI 762 - AT - Income TaxDisallowing the interest claimed under Section 24(b) - part of the housing loan was utilized for advancing to certain parties from whom the assessee has shown interest receipts - quantum of loan utilised for construction of house property AND Quantum of loan utilised for advancing to certain parties - HELD THAT:- The facts which are emerging from records are that the assessee has taken housing loan from ICICI Bank a part of the said loan was utilized towards construction of second floor of the house property and related expenses as well as repayment of earlier loan taken from IDBI Bank for construction of ground and first floor. It is also an admitted fact that a part of the property was self-occupied and a part let out in respect of which rental income has been offered to tax. A part of the housing loan was utilized for advancing to certain parties from whom the assessee has shown interest receipts in her return of income. Therefore, the fact that the loan was taken and utilized for the purposes of construction of house property and for advancing to certain parties and on such borrowing, the assessee has incurred an interest expense during the financial year is clearly emerging from records. Therefore, the interest pertaining to the quantum of loan utilised for construction of house property shall be eligible for deduction against the income shown under the head “Income from house property” and the remaining interest pertaining to the quantum of loan utilised for advancing to certain parties shall be eligible for deduction against the interest income shown under the head “Income from other sources”. Addition towards unexplained cash deposit in the bank account - HELD THAT:- On perusal of cash flow statement, it is noted that the assessee was having cash in her hands which reasonably explain the source of cash deposit in her bank account. The addition so made is hereby directed to be deleted.
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