TMI Blog2017 (1) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... above said case can be conveniently applied in the instant case also. Accordingly, we hold that withdrawal of Rs. 1.70 crores made by the assessee should be considered as having been made out of capital only. In that view of the matter, we find merit in the contention of the assessee that there is no requirement to make any disallowance out of interest expenditure. Non-granting of deduction of interest paid on housing loan - deduction allowable u/s 24(b) - Held that:- This issue requires fresh examination at the end of the Assessing Officer, since the Assessing Officer himself has changed the character of the Goregaon flat, i.e. as against the claim of the assessee that the Goregaon flat is self occupied property, the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 17.10.2013 passed by the learned CIT(A)-8, Mumbai and they relate to A.Y. 2010-11. 2. At the time of hearing learned AR submitted that the tax effect involved in the appeal filed by the Revenue is less than 10 lakhs. Learned Departmental Representative agreed with the same. Accordingly, in pursuance of the Circular No. 21/2015 dated 10.12.2015, the Revenue is precluded from pursuing this appeal. Accordingly, we dismiss the appeal filed by the Revenue. 3. In the appeal filed by the assessee, following issues are being contested: (a) Disallowance made u/s. 14A of the Act (b) Disallowance made out of interest expenditure (c) Disallowance on interest paid on housing loan 4. At the time of hearing learned AR did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned AR placed reliance on the decision rendered by Hon'ble Bombay High Court in the case of Reliance Utilities Power Pvt. Ltd. (313 ITR 340). On the contrary learned Departmental Representative supported the order passed by the learned CIT(A). 7. Having heard the rival contention, we are of the view that there is merit in the contentions of the assessee. A perusal of the Balance Sheet furnished by the assessee would show that the assessee is having capital balance of Rs. 12.46 crores. During the year under consideration the assessee has withdrawn a sum of Rs. 1.70 crores only from out of the bank overdraft account. In the case of Reliance Utilities Power Pvt. Ltd (supra), the Hon'ble Bombay High Court has held that the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer, however, treated the Prithvi flat as self occupied property. Accordingly, the Assessing Officer computed the annual letting value of the Goregaon and Lonavala flats treating the same as deemed to be let out. The Assessing Officer determined the annual letting value at 7% of the investment made in purchase of flats. The assessee accepted that the self occupied property as Prithvi flat and did not contest the same before Ld CIT(A). However, the assessee contested the annual letting value determined by the AO in respect of other two flats. 9. The learned CIT(A) did not agree with the annual letting value determined by the Assessing Officer. The learned CIT(A), by following the decision rendered by the ITAT in the case of Smt. Mun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed deduction for entire interest expenditure, since the Goregaon flat has been accepted as deemed to be let out. 12. On the contrary, learned Departmental Representative submitted that the assessee himself has admitted that Goregaon flat was not fit for occupation, accordingly, he submitted that the learned CIT(A) was justified in rejecting the claim for deduction of interest expenditure. 13. Having heard the rival contention, we are of the view that this issue requires fresh examination at the end of the Assessing Officer, since the Assessing Officer himself has changed the character of the Goregaon flat, i.e. as against the claim of the assessee that the Goregaon flat is self occupied property, the Assessing Officer has trea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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