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2022 (8) TMI 359 - AT - Income TaxDeduction of interest expenses paid for commercial property given on lease rent against income assessable under the head "Income from House Property" - Addition by merely stating that the possession of the space is not handed over to the appellant till 31.03.2011 - Validity of directions given by the Ld CIT(A), without considering the fact that the appellant is a beneficial owner of the said property - HELD THAT:- When income of commercial property they accepted and even allowed applicable standard deduction on the same, then how they can take a reverse view while dealing with allowability of interest. Secondly, legally also the action of Ld. CIT (A) is not tenable as per law. So, on both the grounds action of Ld. CIT(A) is not sustainable. In the result, ground no.1 of assessee be allowed and action of Ld. CIT (A) is reversed. Addition u/s 14A r.w.r. 8D - HELD THAT:- We are of the considered view that technically the action of AO was wrong and in defiance of the conditions prescribed in section 14A read with Rule 8D. Moreover, referring the decision of Jurisdictional ITAT [2018 (1) TMI 782 - ITAT MUMBAI] as has been held there that Ld. CIT(A) is not empowered to remove the deficiency in the order of AO. Alternatively also we hold that section 14A is not applicable in the present case as argued by the assessee vide para-12 above. Section 14A of the Act is applicable only those income which are prescribed in chapter-III. Any income which are part of total income but ultimately not chargeable to tax by virtue of chapter 6A or as in the instant case section 67, section 86 read with section 167B of the Act. As section 14A is not applicable in the case of assessee, hence, there is no question of suo moto disallowance by assessee on interest on TDS - As directed to the AO, for accepting revised computation to be filed by the assessee reversing suo moto disallowances made in anticipation of applicability of section 14A.
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