TMI Blog2015 (12) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... - Decided against assessee. - ITA No. 384 of 2015 - - - Dated:- 26-11-2015 - MR. AJAY KUMAR MITTAL AND MR. RAMENDRA JAIN, JJ. For The Appellant : Mr. Aman Bansal, Advocate AJAY KUMAR MITTAL, J. 1. This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the orders dated 16.6.2015 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Chandigarh Benches SMC , Chandigarh (hereinafter referred to as the Tribunal ) in ITA No. 1221/Chd/2012, for the assessment year 2008-09, dated 22.8.2012 (Annexure A-2) passed by the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ] and dated 5.10.2010 (Annexure A-1) passed by respondent No.2. The following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudication of the instant appeal as narrated therein may be noticed. The assessee filed her return of income on 31.7.2008 for the assessment year 2008-09 declaring the income at ₹ 7,44,834/-. The said return was processed under Section 143(1) of the Act on 10.4.2009. Subsequently, the assessee filed a revised return on 18.1.2009 declaring the income at ₹ 3,08,663/-. The case was taken up for scrutiny and notice under Section 143(2) of the Act was issued on 30.9.2009. A questionnaire along with notice under Section 143(2)/142(1) of the Act was issued on 15.2.2010. The assessee claimed deduction of interest on housing loan of ₹ 6,86,971/- under Section 24(b) of the Act for the property bearing House No. 3557, Sector-69, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the loan was to be divided among four co-owners as per the provisions of Section 45 of the 1882 Act and, thus, allowed only 1/4th of the total interest payment to the assessee. On appeal, the CIT(A) held that the house loan has been taken jointly by all the four co-owners in whose names the house property was purchased and, therefore, the interest paid on the loan was to be divided among the four co-owners as per the provisions of Section 45 of the 1882 Act. Further, it was held that the Assessing Officer was right in restricting the interest under Section 24(b) of the Act to 25%. The relevant findings recorded by the CIT(A) read thus:- 2.3. I have considered the submissions of the Ld. Counsel. For the sake of ready reference, provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he loan is to be divided among the four co-owners as per the provisions of Section 45 of the Transfer of Property Act. 2.3.2. In the case of Sh. C.K. Malik (82 TTJ 836), the shares of individual co-owners were specified and so the rent was divided among the co-owners as provided in section 45 of the Transfer of Property Act. Thus, the facts in the case of Sh. C.K. Malik (supra) are distinguishable to the facts of this case. In the instant case, the shares of co-owners are not specified and so the house property as well as the housing loan is to be taken as jointly held by all the co-owners and interest claimed u/s 24(b) is also to be equally divided. The allowable interest to the appellant u/s 24(b) is also to be equally divided. The all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecified. The language of section 45 of the Transfer of Property Act, 1882 is abundantly clear and provides that where immovable property is transferred for a consideration to two or more persons, such consideration is paid out of funds belonging to them in common, they are entitled to interest in such property identical as nearly as may be with the interest to which they were respectively entitled in the fund. If such consideration is paid out of the separate funds belonging to them respectively, then such persons will be entitled to interest in such property in proportion to the shares of the consideration which they respectively advanced. The last requirement of section is that in the absence of evidence as to the interest in the funds to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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