TMI Blog2013 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... advances, needs verification at Assessing Officer’s level – Appeal allowed. Disallowance of interest claimed on house building property – CIT deleted disallowance – Hels that:- assessee paid interest on loan borrowed for housing property – Once Assessee has income from house property disallowance of interest not restricted – But allowable on entire payment of interest – No infirmity in order of CIT – Appeal dismissed. - ITA No.1231/Kol/2010 - - - Dated:- 21-6-2013 - Shri N. S. Saini And Shri Mahavir Singh,JJ. For the Appellant : Shri K. N. Jana, SR-DR For the Respondent : Shri B. P. Jaiswal, FCA ORDER Per Mahavir Singh, Judicial Member:- This appeal filed by Revenue is arising out of order of Commissioner of Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd advance to Sleek Sales written off of Rs.12,500/-. The A/R was asked to submit the details of income shown in respect of above mentioned written off expenditure in earlier years and steps to recover the same amounts with evidences. In absence of details submitted in respect of written off expenses, the said expenditures are disallowed and added to the total income of the assessee." Aggrieved, assessee preferred appeal before CIT(A), who without going into the details deleting the disallowance just on the basis of submission of assessee. The Ld. Counsel for the assessee before CIT(A) stated that it had offered interest of Rs.88,050/- for taxation in AY 2002-03 and no evidence to that effect was filed. Further, there is no evidence in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A), who allowed the claim of assessee by observing in para-7 of his order, which reads as under:- "7. Ground no. 4 relates to disallowance of interest of Rs.13,16,080/- on borrowed fund. The appellant has claimed interest of Rs.13,16,080/- on borrowed fund. The AO has disallowed the claim on the ground that the appellant has given interest-free loans to different parties. The Ld. AR contended that the borrowed fund was utilized for the purposes of business. The appellant has paid interest of Rs.45,500/- on unsecured loans, that of Rs.2,953/- on motor-car loan, and, that of Rs.12,67,627/- to the UCO Bank. The interest-bearing loans as on 31-03-2006 amount too Rs.87,77,560/-, comprising, unsecured loan of Rs.1,60,000/-, and, loan of Rs.86,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontentions and gone through facts and circumstances of the case. We find that assessee has debited interest on loan borrowed for housing property amounting to Rs.2,33,675/-. According to Assessing Officer, the allowability of interest is only of Rs.1.50 lakh and accordingly, he disallowed the sum of Rs.83,675/- u/s.24(b) of the Act. Aggrieved, assessee preferred appeal before CIT(A), who allowed the claim of assessee vide para-14, which is re-produced as under:- "14. In the additional ground No.1, it has been contended that the AO was not justified in restricting the claim u/s. 24(b) to Rs.1,50,000/-. The appellant has claimed interest of Rs.2,33,675/- on borrowed fund as per the provisions of section 24(b),. The AO has noted that the cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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