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2014 (3) TMI 365 - AT - Income TaxDisallowance of interest u/s 24(b) of the Act - Whether the said amount advanced by Saraswat Bank to the assessee in the form of rent advance could be considered as amount borrowed by the assessee from the said Bank for purchase of the property – Held that:- It was a loan advanced by Saraswat Bank Cooperative Ltd to the assessee which was utilized by the assessee for purchase of first floor of the premises and the said rent/advance carried interest at the rate of 12% per annum with monthly rest - though the amount advanced to the assessee is termed as rent advance but in all form it is an advance of loan to the assessee and a part of the said loan has been utilized by the assessee for purchase of first floor of the premises which was later on let out by the assessee to Saraswat Bank Cooperative Ltd. and the rental income has been derived by the assessee - the assessee utilized the sum for purchase of the immovable property i.e. first floor of Sailor building at Fort, Mumbai, and the assessee is entitled to get the deduction of the interest paid thereon u/s 24(b) of the Income Tax Act - thus, the assessee is allowed to have a deduction of interest u/s 24(b) of the Act – Decided in favour of Assessee. Set off of business loss against income from house property not allowed – Held that:- When the assessee resumed his business of purchase and sale of shares, it is not known whether the assessee sold any of shares held as stock-in-trade - It might be possible that the assessee when resumed trading in shares, he started with fresh purchase and sale of shares - All the facts need verification - The assessee will furnish requisite details of the shares held as stock-in-trade to the AO and the AO will verify the said details and decide the issue as to whether the assessee had temporarily suspended his business or there was complete stoppage of business by assessee – the assessee has not filed requisite details of total loss claimed by assessee – thus, the AO is directed for fresh adjudication – Decided in favour of Assessee.
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