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TMI Blog2017 (1) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... ursuance 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 press grounds relating to disallowance made u/s. 14A in view of the smallness of the amount. Hence we dismiss the grounds relating to the same. 5. Next issue relates to disallowance made out of interest expenditure. The assessee had claimed interest expenditure of Rs. 23.56 lakhs under head "interest on bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, 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 During the year under consideration the assessee has withdrawn a sum of Rs. 1.70 crores only from out of the bank overdraft account.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 disallowance out of interest expenditure is not called for when the assessee has got sufficient own funds. Further it was held that where the assessee has own funds as well as borrowed funds, a presumption can be made that advances given for non business purposes have been made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting 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. Munira Chudasama (ITA No. 3027/Mum/2011), held that the municipal rateable value should be taken as criteria for determining the annual letting value. 10. Before the learned CIT(A), the assessee also claimed that entire interest expenditure paid on purchase of Goregao ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 treated the Prithvi flat as self occupied property. Now, the learned CIT(A), having directed the AO to treat the Goregaon flat as deemed to be let out, has given a finding that the Goregaon flat is not fit for occupation. Hence there is contradiction in the order given by the Ld CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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