Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 845 - ITAT DELHIAllowability of deduction of u/s 24(b) from house property (rental) income – Interest paid on capital to partners – Held that:- The assessee claimed deduction on the amount of interest paid to partners on their capital contribution u/s 24(b) of the Act - no material has been placed on record to indicate that any property was acquired, constructed, repaired or renewed, etc., with the borrowed capital on which interest was paid – Relying upon CIT vs. Four Fields Pvt. Ltd. [1997 (5) TMI 23 - PUNJAB AND HARYANA High Court] - deduction for interest u/s 24(b) of the Act can be allowed only where the property has been acquired, constructed, etc., with a borrowed capital and interest is payable in respect of such capital - the claim of the assessee is in clear violation of the provisions of section 24(b) of the Act and it cannot be allowed – Decided in favour of Revenue. Validity of assessment u/s 147 of the Act – Change of opinion – Held that:- There is no fresh basis for which the assessment was sought to be reopened - The AO is harping on the same material to canvass now the amount is not deductible - This amounts to change of opinion - There is no reference to any tangible material coming to the possession of the AO after the completion of the original assessment divulging the escapement of income – Relying upon CIT v. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - there can be no reopening of assessment simply on the basis of change of opinion - there must be some "tangible material" with the AO proposing to issue notice for reassessment leading to the conclusion about the escapement of income - there is no fresh material by which the AO could have entertained reason to believe about the escapement of income - there is no need to deal with the question of disallowance of interest and other expenses - Decided against Revenue.
|