1993 (5) TMI 75

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..... him along with the return and claimed a deduction under section 80C(2)(h)(ii) of the Act. The assessee had borrowed the money from HDFC who has issued a certificate stating that the principal amount of Rs. 2,910 and interest of Rs. 12,473 has been paid by him. In this case original assessment was completed under section 143(1)(a) on 16-2-1990 and a refund of Rs. 1,370 was granted on 19-2-1990 as against refund claim of Rs. 2,588. While completing the assessment, assessee's claim of deduction under section 80C for amount of repayment of principal amount of Rs. 9,664 was disallowed as no proof regarding completion of property after 1-4-1987 was attached with the return. The assessee moved an application dated 9-5-1990 requesting to rectify t .....

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..... excess of the annual value over the amount of rent payable for a year by the tenant ; or (ii) a sum equal to one-sixth of annual value, whichever is less : " Section 80C(2)(h)(ii) of the Act reads as under : " For the purposes of purchase or construction of a residential house property the construction of which is completed after 31-3-1987 and the income from which is chargeable to tax under the head ' Income from house property ' (or which, if it had not been used for the assessee's own residence, have been chargeable to tax under that head) where such payments are made towards or by way of--- (a) any instalment or part payment of the amount due under any self financing or other scheme of any development authority, housing board or o .....

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..... ve for the assessee placed reliance on a judgment of House of Lords in the case of Paton (Fenton's Trustee) v. Inland Revenue Commissioners wherein the House of Lords affirmed the decision of the Court of Appeal. In that case interest was added to principal at the end of each half-year. Whole amount was treated as principal for next half year. The House of Lords held that it amounted to payment of interest. The learned representative for the assessee also relied on the judgment of the Supreme Court in the case of Chandulal Harjiwandas v. CIT [1967] 63 ITR 627 wherein it has been held that the assessee was entitled to claim the rebate on the premia paid during his minority. In spite of the clauses for payment of moneys to the proposer in cer .....

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