Income Tax Appellate Tribunal - Chandigarh
Ravi Bindal & Madan Lal Chaudhary, ... vs Ito, Parwanoo on 6 June, 2019
आयकर अपील य अ धकरण, च डीगढ़ यायपीठ,च डीगढ़ I N T H E I NC OM E T A X A P PEL L A TE T RI B U N AL D I V I SI O N B E NC H , ' SM C ' , CH A N DI G A RH ी संजय गग , या यक सद य B E F OR E S H R I S A N J A Y G A R G, J U D I C I A L M E M B E R आयकरअपीलसं./ITA No. 836/ C h d / 2 0 1 8 नधा रणवष / Assessment Year : 2008-09 Ravi Bindal & Madan Lal Vs. The ITO, Chaudhary, HIG-3, Sector 1A, बनाम Parwanoo Parwanoo Distt. Solan (H.P.) थायीलेखासं./PAN NO: AAKFR1027J अपीलाथ /Appellant यथ /Respondent नधा रतीक ओरसे/Assessee by : Sh Surinder Babbar, CA राज वक ओरसे/ Revenue by : Sh. Manjit Singh, CIT DR सन ु वाईक तार$ख/Date of Hearing : 06.06.2019 उदघोषणाक तार$ख/Date of Pronouncement : 06. 06.2019 आदे श/Order The present appeal has been preferred by the assessee against the order dated 27.04.2018 of the Commissioner of Income Tax (Appeals), Shimla [hereinafter referred to as 'CIT(A)'].
2. The assessee in this appeal has taken following grounds of appeal:-
1. That on the facts and circumstances of the case, the order passed by the Ld. A.O. and the Ld. CIT(A) in concurrence with that of the Ld. Assessing Officer is wrong, against facts and specific provisions of law.
ITA No. 836-Chd-2018- Ravi Bindal & Madan Lal Chaudhar, Solan 2
2. That on the facts and circumstances of the case, the Ld. CIT(A) is not at all justified in upholding the addition of Rs. 8,68,216/- in respect of disallowing interest claimed under 'Income from House Property.'
3. The sole issue involved in this appeal is relating to the disallowance of interest expenditure claimed by the assessee as deduction against the rental income earned from House Property as per provisions of section 24 of the Income Tax Act, 1961 (in short 'the Act').
The assessee during the year earned a total rental income from house property of Rs. 14.49 lacs. The assessee claimed a deduction of Rs. 8,68,216/- on account of interest expenditure incurred for acquisition and construction of house property as allowable under the provisions of section 24 of the Act. A perusal of the impugned order of the CIT(A) reveals that the Ld. CIT(A) has rejected the aforesaid claim of the assessee on two grounds; firstly, that the assessee has not placed the copy of the relevant loan agreement / bank papers to show that the aforesaid loan was taken for acquisition / construction of the house property in question; secondly, that even otherwise the total investment in the building including lift as per the balance sheet was of Rs. 1,40,75,414/-, however, the assessee claimed the deduction of interest expenditure on a total loan of Rs. 1.61 crores.
ITA No. 836-Chd-2018- Ravi Bindal & Madan Lal Chaudhar, Solan 3
4. The Ld. Counsel for the assessee has submitted that he is ready to produce the relevant evidence before the Assessing Officer to show that the aforesaid loan was taken for acquisition / construction of the building in question.
So far as the contention raised by the Ld. CIT(A) that as against the total loan of Rs. 1.61 cores, the assessee has incurred expenditure of Rs. 1.40 crores on the building, the Ld. Counsel for the assessee has submitted that the assessee has taken loan in two parts. In first part, a loan of Rs. 70 lacs was taken which was fully utilized, however, out of the second loan amount of Rs. 1 crore, the assessee utilized most of the amount except some amount which was deposited in the shape of FDR with the bank to be used as and when required. The Ld. Counsel for the assessee has submitted that the assessee may be allowed to demonstrate before the Assessing Officer as to exactly what amount of loan was used for acquisition / construction of the building and that how much of proportionate disallowance is attracted, considering the date of the loan sanctioned and date of utilization of the same etc.
5. I find force in the above submissions of the Ld. Counsel for the assessee and considering the same, I accordingly set aside the order of the CIT(A) and restore the matter to the file of the Assessing Officer to examine the limited aspects as noted above and to decide the matter afresh on this issue in accordance with law.
ITA No. 836-Chd-2018- Ravi Bindal & Madan Lal Chaudhar, Solan 4 In the result, the appeal of the assessee is treated as allowed for statistical purposes.
Order dictated and pronounced in the Open Court immediately on completion of hearing.
Sd/-
(संजय गग / SANJAY GARG)
या यक सद य/ Judicial Member
Dated : 06.06.2019
"आर.के."
आदे शक त+ल,पअ-े,षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. आयकरआयु.त/ CIT
4. आयकरआयु.त (अपील)/ The CIT(A)
5. ,वभागीय त न1ध, आयकरअपील$यआ1धकरण, च3डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायकपंजीकार/ Assistant Registrar