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2022 (4) TMI 492 - AT - Income TaxAssessment u/s 153A - validity of the search assessment - HELD THAT:- All the additions as confirmed by Ld. CIT(A) in the impugned order are liable to be deleted since the same are not based on any incriminating material unearthed during the course of search operations. We order so. The assessee’s legal grounds succeed. Interest on borrowed capital - assessee claimed interest in borrowed capital under the head ‘Income from House Property’ - CIT(A) held that interest on subsequent loan could be allowed provided the same was taken to repay earlier loans and deduction would be allowable only to the extent of interest on earlier loan used for acquiring the property and not on the unpaid interest on earlier loans - HELD THAT:- We concur with the findings of Ld. CIT(A) since the same are based on facts. The interest is allowable only if the loan has been utilized to acquire the property. To that extent, interest has already been allowed to the assessee. Finding no infirmity in the impugned order, on this issue, we dismiss the ground raised by the assessee. Rental Income - We find that in case of property which has been let out for part of the year, the assessee would be entitled for vacancy allowance if the property remains vacant for part of the year. It is undisputed position that the property has remained unoccupied for part of the year. Therefore, the assessee is entitled for vacancy allowance and this addition has no legs to stand. By deleting the same, we allow the ground of appeal. Legal grounds are concerned, we find that the assessee was subjected to search action on 11.05.2012. The assessee had already filed return of income on 14.03.2012. However, the time limit to issue notice u/s 143(2) had not expired and Ld. AO could have issued said notice by 30.09.2012. Therefore, it is not a case of concluded assessment. Rather Ld. AO was well within his right to make any addition after examination of assessee’s books of account. The legal proposition laid down by Hon’ble Delhi High Court in Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] also supports this view. No infirmity has been shown to us in the jurisdiction acquired by Ld. AO. - Decided in favour of assessee.
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