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2018 (8) TMI 1627 - AT - Income TaxAllowance of interest u/s 24(b) - rental income from house property - nexus between loan taken and purchase of house property - Held that:- AO has declined the claim of the assessee on account of this fact that no purpose has been written in the application while seeking the loan from M/s. India Bulls Financial Service Ltd. however, the AO nowhere examined the other relevant documents. CIT(A) has gone through the each and other aspects of the case and also gone through the loan agreement which speaks about the purpose in which the loan was taken. The loan was found to be taken for purchase of property. Therefore, the deduction u/s 24 of the Act was allowed. The facts are not distinguishable at this stage. Nothing came into notice that the loan was not taken by the assessee for the purpose to purchase the property at Pune. It is only factual issue and according to the facts of the case, the claim of assessee u/s 24 of the Act has been allowed. CIT(A) has passed the order judiciously and correctly which is not liable to be interfere with at this appellate stage. Accordingly, this issue is decided in favour of the assessee Disallowance u/s 14A - assessee has argued that the claim of the assessee be restricted to the extent of exempt income - Held that:- In view of the submission made by the assessee and in view of the law settled in case of Joint Investment Private Limited [2015 (3) TMI 155 - DELHI HIGH COURT] we restricted the expenses incurred to earn the exempt income to the extent of dividend income i.e. to the tune of ₹ 1,12,500/-. Accordingly, the issue has decided in favour of the assessee against the revenue.
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