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TMI Blog2012 (11) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... icer noticed that the assessee had purchased a house property at T. Nagar, Chennai on 20.01.2003 for Rs. 32.64 lakhs. In addition to the said consideration, he paid Rs. 4.00 lakhs towards registration cost and also had added further amount of Rs. 39,926/- as cost of improvement. In this manner, the assessee paid net cost of Rs. 37,03,926/-. In the enclosures with the return, the assessee had added an amount of Rs. 4,82,042/- as interest on housing loan taken in 2003 for purchasing the property. Finally, the assessee sold the said property on 20.04.2006 for Rs. 26.00 lakhs. 3. After taking cognizance of the above facts, the Assessing Officer was of the opinion that since interest in question on housing loan, had already been claimed as dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein, both the additions made by the Assessing Officer (supra) have been deleted by the CIT(A). Regarding addition of interest amount of Rs. 4,82,042/-, the CIT(A) has held that the assessee was entitled to include the interest amount for computation under section 48 despite the fact that the same had been claimed under section 24(b) while computing income from house property. Regarding other addition of Rs. 9,94,542/- (supra), the CIT(A) has held that the payments made by the concerned creditor to the assessee stood duly proved from the record, which had not been considered by the assessing authority. It is, in this background, the Revenue has challenged the CIT(A)'s order. 7. The DR, representing the Revenue, reiterated the finding of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the income under the head 'house property', he preferred to raise the claim of deduction under section 24(b) of the "Act", which reads as under: "(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:" There is no quarrel that since the assessee's claim of deduction was under the statutory provisions; therefore, he succeeded in getting the same. However, after the property was sold, he also chose to include the interest amount while computing capital gains under section 48 of the "Act", which reads as under: "48. The income chargeable under the head "Capital gains" shall be computed, by deducting from the full value of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng income from the head "other sources". We find that the Assessing Officer had turned down assessee's plea by holding that the assessee's alleged loan transaction to the concerned debtor namely Shri S.A. Krishnakanth could not be called a 'business activity' even if it had culminated in some interest which accrued to the assessee. Not only this, the assessing authority also rejected assessee's explanation tendered on facts as well. However, the CIT(A) has found merits in assessee's argument and held that the material on record duly proved the transactions since the details of loan creditors, who had lent money to the assessee stood proved as well as there was evidence that the assessee had also paid interest to them in return. Further, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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