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2015 (12) TMI 200 - PUNJAB AND HARYANA HIGH COURT

2015 (12) TMI 200 - PUNJAB AND HARYANA HIGH COURT - TMI - Allowable interest to the assessee - Held that:- The authorities below on appreciation of material on record have concurrently recorded that the assessee was entitled to 1/4th deduction, i.e. 25% of the entire interest. Learned counsel for the assessee was not able to demonstrate that the approach of the authorities below was erroneous or perverse or that the findings of fact recorded were based on misreading or misappreciation of evidenc .....

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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 substantial questions of law have been claimed by the assessee:- (i) Whether in facts and circumstances of .....

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appellant/assessee? (iii) Whether in facts and circumstances of the present case, the Ld. Authorities below have failed to appreciate that any provision for deduction/relief/incentive has to be construed liberally? (iv) Whether in facts and circumstances of the present case, the Ld. Authorities below have failed to quash the initiation of penalty proceedings under section 271(1)(c) of the Act without any cogent reason? (v) Whether in facts and circumstances of the case, the Ld. Authorities belo .....

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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 o .....

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e A-2) dismissed the appeal. Still dissatisfied, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 16.6.2015 (Annexure A-3) dismissed the appeal which gave rise to the assessee to approach this Court by way of instant appeal. 3. After hearing learned counsel for the appellant-assessee, we do not find any merit in the appeal. 4. The Assessing Officer had noticed that there were four cosharers in the house in question and the loan was taken jointly by them in their na .....

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sted for purchase/construction of the house in question. The Assessing Officer had observed that the interest paid 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 divid .....

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or more persons and such consideration is paid out of a fund belonging to them in common, they are, in the absence of a contract to the contrary, respectively entitled to interests in such property identical, as nearly as may be, with the interests to which they were respectively entitled in the fund; and, where such consideration is paid out of separate funds belonging to them respectively, they are, in the absence of a contract to the contrary, respectively entitled to interests in such proper .....

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espectively entitled in the fund. The appellant has claimed that she has invested for purchase/construction of the impugned house property, but no evidence in this regard has been produced. Further, the house loan has been taken jointly by all the four co-owners in whose names the house property was jointly purchased. Hence, the interest paid on the 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. M .....

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ivided. The allowable interest to the appellant u/s 24(b) is also to be equally divided. The allowance interest to the appellant u/s 24(b) will accordingly be 25% of the entire interest and the Assessing Officer has rightly restricted it to 25%. The action of the Assessing Officer is upheld and the grounds of appeal Nos. 1 to 5 are dismissed. 5. The Tribunal had affirmed the aforesaid findings of the CIT (A) by observing that the plot in question was purchased by four persons and the housing loa .....

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e had invested for purchase/ construction of the house property. The Tribunal had recorded as under:- 9. I have carefully considered the rival submissions and have also perused the materials available on record. There is no doubt that so far as the facts of the present case are concerned, the assessee had claimed deduction on interest of housing of ₹ 6,86,971/- u/s 24(b) of the Act. There is no dispute that plot in question was purchased by four persons and the housing loan was also taken .....

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. 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 which they were respectively entitled or as to the shares which they respectively advanced, such persons shall be presumed to be equally interested for the prope .....

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