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2023 (3) TMI 1089 - AT - Income TaxIncome from house property - deduction for interest u/s.24(b) - disallowance of deduction claimed u/s 24(b) in respect of interest paid on borrowed capital while computing income from house property - HELD THAT:- In this case, since the assessee has let out the building from January, 2007 onwards in the Financial Year relevant to the AY 2007-08, it has rightly claimed interest paid on borrowed capital u/s.24(b). CIT(A), although, accepted the fact that the assessee has borrowed loan from bank for the purpose of construction of building and also said building has been let out, erred in sustaining addition made towards disallowance of interest on flimsy grounds like probability or improbability of construction of building in a short period ignoring fact that what was constructed by the assessee is unfinished building. AO is erred in disallowing interest claimed towards borrowed capital u/s.24(b) - CIT(A) without appreciating the facts simply sustained additions made by the AO and thus, we direct the AO to delete additions made towards disallowance of deduction claimed towards interest paid on loan borrowed from SBI u/s.24(b) - Decided in favour of assessee.
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