Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 1050 - AT - Income TaxIncome from house property - interest expenses claimed by the assessee u/s 24(b) against income earned from renting out its property shown under the head “income from house property” - CIT(A) allowed the same noting that the borrowing had been utilized for repaying liability pertaining to construction of Mall and not for repaying loan taken for construction - Whether loan could be said to be utilized for constructing house property? - HELD THAT:- Considering the fact that even the AO noted the OCD being utilized for payment of outstanding liability of JPIPL which the assessee demonstrated as pertained to construction expenses, we find no infirmity in the findings of the CIT(A) that the loan was utilised not for repayment of an earlier loan but for a liability for construction of property. DR has been unable to controvert this fact before us. We therefore agree with the CIT(A) that the loan can be said to be utilized for construction of property and interest thereon accordingly is allowable u/s 24(b) of the Act. Basis for disallowing interest expenses by the AO does not survive. Therefore, for this reason alone, the allowance of claim of deduction under section 24(b) of the Act of the interest paid by the assessee is held to be sustainable in law. No reason to deal with the arguments of the DR which are in the context of different set of facts which are not present in the case before us. The entire arguments of the ld.DR are raised on the fact that the interest has been paid by the assessee on a fresh loan taken to repay the original loan. Since the facts in the present case are not so, dealing with the same is only an academic exercise, and we see no reasons therefore to deal with the same. Decided against revenue.
|