Income Tax Appellate Tribunal - Gauhati
Shri Binod Kumar Daga, Guwahati vs Assistant Commissioner Of Income Tax, ... on 24 July, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI 'E'COURT, ATKOLKATA BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.40/Gau/2018 ( नधारणवष / Assessment Year:2014-15) Binod Kumar Daga, Guwahati Vs. ACIT, Circle-4, Guwahati C/o Akash Trading Co, Dewan Patty-Fancy Bazar- Guwahati-
781001 थायीले खासं . /जीआइआरसं . /PAN/GIR No.: AFCPD 1881 R (Appellant) .. (Revenue) Appellant by : Shri B.M. Shethia, FCA Respondent by : Shri H. R. Singh, JCIT DR सुनवाईक तार ख/ Date of Hearing : 16/05/2019 घोषणाक तार ख/Date of Pronouncement : 24/07/2019 आदे श / O R D E R Per Dr. A. L. Saini:
The captioned appeal filed by the assessee , pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-2, Guwahati, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the 'Act') dated 26/09/2015.
2. Grounds of appeal raised by the Assessee are as follows:
1. For that the Learned Commissioner of Income Tax (Appeals)-2, Guwahati is erred in law as well as in facts in observing that appellant has failed to file any petition under Rule 46A in respect of document namely Certificate dated 21.01.2017 of the Federal Bank of India-Fancy Bazar-
Guwahati in respect of loan taken and interest paid to the bank for construction of Ware House under the name and style Daga Ware Housing at Amingaon which was constructed jointly with appellant's wife and thereby confirming the disallowance of interest claim of Rs. 2,59,459/- u/s Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 24 of I.T. Act while computing income from House property made by Assessing Officer, ignoring such loan utilized for construction of ware house from whom rental income received during the year at Rs. 37,88,580/- in the facts of the case without calling any explanation from the appellant in the facts of the case.
2. For the other grounds of law as well as facts may kindly be permitted at the time of hearing the appeal.
3. At the outset itself, the ld. Counsel for the assessee submitted that the ld. Assessing Officer made the disallowance of interest claimed u/s 24 of the Act to the tune of Rs. 2,59,459/-. The ld. Assessing Officer finally made the disallowance, observing that the assessee has not filed any detail in receipt of interest claim. The counsel submitted that the assessee has filed the necessary evidence to claim the interest u/s 24 of the Act during the assessment proceedings vide letter dated 16.06.2016 therefore the disallowance of interest so made by the Assessing Officer is based on mere suspicion and surmises. The ld. DR for the revenue fairly agreed that the assessee submitted interest certificate u/s 24 of the Act before the Assessing Officer, and also submitted bank statement and therefore, claimed interest u/s 24 of the Act,howeverthe Assessing Officer has ignored the same and did not take into account the interest certificate u/s 24 of the Act.
4. We have heard both the parties and perused the material available on record. We note that the assessee has submitted the certificate of interest claimed u/s 24 of the Act vide letter dated 16.06.2016 (vide PB 29 to 31),however, the Assessing Officer has ignored the same. We note that during the appellate proceedings the assessee has submitted the bank statement.We note that the assessee took loan from Federal Bankand the loan account has been closed on 03.09.2014. We note that the Ld. CIT(A) dismissed the appeal of the assessee observing the following:
" I have gone through the order of the ld. A.O. and find that the disallowance of interest claimed u/s 24 of I. T. Act of Rs. 2,59,459/- was made by the ld. A.O. by observing that no details in respect of interest claimed were filed. However, on the other hand, the ld. AR of the appellant has contended that evidences for claim of interest u/s 24 were filed during the course of assessment proceedings vide letter dated 16/06/2016. Therefore, the disallowance of interest so made by A.O. is based on mere suspicion and surmises.
Pa g e | 2 Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 After a perusal of the details furnished before the undersigned (as purportedly claimed to have been furnished before the ld. A.O. also), it is nowhere clear as to where the aggregate amount of interest claimed of Rs. 5,18,919/- is reflected. In deed, the appellant had furnished before the undersigned, without any petition under Rule 46A of the Income Tax Rules, a certificate dated 21/01/2017, from the Federal Bank that the loan account has been closed. Clearly the impugned order was passed in this case on 26.09.2016 and hence the said certificate dated 21/01/2017 could not have been filed before the ld. A.O. on or before 26.09.2016. I fail to appreciate that on one hand the appellant has contended that he had furnished the details before the A.O. and on the other hand, the appellant has placidly furnished additional evidences without any petition under Rule 46A of the Act. Even more, in the said certificate, the amount of interest paid jointly by the co-owners is nowhere stated, leave apart the individual share of each co-owner which would have been determined based on the ratio of payments made towards the loan account by each co-owner. In the absence of any specific details and certificate as required u/s 24 of the Act, the disallowance of interest of Rs. 2,59,459/- u/s 24 made by the A.O. is hereby is confirmed."
5. We have gone through the observation of the Ld. CIT(A) and seems to us that the assessee had filed the necessary certificate to claim the interest u/s 24 of the Act,however neither the Assessing Officer nor the Ld. CIT(A) has examined it therefore, we are of the view that this issue should be remitted back to the file of the Assessing Officer to examine the interest certificate u/s 24 of the Act. Therefore we set aside the order of the Ld. CIT(A) and remit this issue back to the file of the Assessing Officer.The Ld. AO is directed to examine the certificate u/s 24 of the Act and allow the claim of the assessee in accordance with law.
6. In the result, statistical purposes the appeal of the assessee is treated to be allowed.
Order pronounced in the Court on 24.07.2019
Sd/- Sd/-
(A.T. VARKEY) (A.L.SAINI)
या यकसद य / JUDICIAL MEMBER लेखासद य / ACCOUNTANT MEMBER
दनांक/ Date: 24/07/2019
(SB, Sr.PS)
Pa g e | 3
Binod Kumar Daga
ITA No.40/Gaul/2018
Assessment Year:2014-15
Copy of the order forwarded to:
1. Binod Kumar Daga, Guwahati
2. ACIT, Circle-4, Guwahati
3. C.I.T(A)- 4. C.I.T.- Guwahati
5. CIT(DR), Gauhati Bench, Guwahati.
6. Guard File.
True copy
By Order
Senior Private Secretary / DDO/ H.O.O
ITAT, Gauhati Bench
Pa g e | 4
IN THE INCOME TAX APPELLATE TRIBUNAL
GAUHATI 'E'COURT, ATKOLKATA
BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.40/Gau/2018 ( नधारणवष / Assessment Year:2014-15) Binod Kumar Daga, Guwahati Vs. ACIT, Circle-4, Guwahati C/o Akash Trading Co, Dewan Patty-Fancy Bazar- Guwahati-
781001 थायीले खासं . /जीआइआरसं . /PAN/GIR No.: AFCPD 1881 R (Appellant) .. (Revenue) Appellant by : Shri B.M. Shethia, FCA Respondent by : Shri H. R. Singh, JCIT DR सुनवाईक तार ख/ Date of Hearing : 16/05/2019 घोषणाक तार ख/Date of Pronouncement : 24/07/2019 आदे श / O R D E R Per Dr. A. L. Saini:
The captioned appeal filed by the assessee , pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-2, Guwahati, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the 'Act') dated 26/09/2015.
2. Grounds of appeal raised by the Assessee are as follows:
1. For that the Learned Commissioner of Income Tax (Appeals)-2, Guwahati is erred in law as well as in facts in observing that appellant has failed to file any petition under Rule 46A in respect of document namely Certificate dated 21.01.2017 of the Federal Bank of India-Fancy Bazar-
Guwahati in respect of loan taken and interest paid to the bank for construction of Ware House under the name and style Daga Ware Housing at Amingaon which was constructed jointly with appellant's wife and thereby confirming the disallowance of interest claim of Rs. 2,59,459/- u/s Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 24 of I.T. Act while computing income from House property made by Assessing Officer, ignoring such loan utilized for construction of ware house from whom rental income received during the year at Rs. 37,88,580/- in the facts of the case without calling any explanation from the appellant in the facts of the case.
2. For the other grounds of law as well as facts may kindly be permitted at the time of hearing the appeal.
3. At the outset itself, the ld. Counsel for the assessee submitted that the ld. Assessing Officer made the disallowance of interest claimed u/s 24 of the Act to the tune of Rs. 2,59,459/-. The ld. Assessing Officer finally made the disallowance, observing that the assessee has not filed any detail in receipt of interest claim. The counsel submitted that the assessee has filed the necessary evidence to claim the interest u/s 24 of the Act during the assessment proceedings vide letter dated 16.06.2016 therefore the disallowance of interest so made by the Assessing Officer is based on mere suspicion and surmises. The ld. DR for the revenue fairly agreed that the assessee submitted interest certificate u/s 24 of the Act before the Assessing Officer, and also submitted bank statement and therefore, claimed interest u/s 24 of the Act,howeverthe Assessing Officer has ignored the same and did not take into account the interest certificate u/s 24 of the Act.
4. We have heard both the parties and perused the material available on record. We note that the assessee has submitted the certificate of interest claimed u/s 24 of the Act vide letter dated 16.06.2016 (vide PB 29 to 31),however, the Assessing Officer has ignored the same. We note that during the appellate proceedings the assessee has submitted the bank statement.We note that the assessee took loan from Federal Bankand the loan account has been closed on 03.09.2014. We note that the Ld. CIT(A) dismissed the appeal of the assessee observing the following:
" I have gone through the order of the ld. A.O. and find that the disallowance of interest claimed u/s 24 of I. T. Act of Rs. 2,59,459/- was made by the ld. A.O. by observing that no details in respect of interest claimed were filed. However, on the other hand, the ld. AR of the appellant has contended that evidences for claim of interest u/s 24 were filed during the course of assessment proceedings vide letter dated 16/06/2016. Therefore, the disallowance of interest so made by A.O. is based on mere suspicion and surmises.
Pa g e | 2 Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 After a perusal of the details furnished before the undersigned (as purportedly claimed to have been furnished before the ld. A.O. also), it is nowhere clear as to where the aggregate amount of interest claimed of Rs. 5,18,919/- is reflected. In deed, the appellant had furnished before the undersigned, without any petition under Rule 46A of the Income Tax Rules, a certificate dated 21/01/2017, from the Federal Bank that the loan account has been closed. Clearly the impugned order was passed in this case on 26.09.2016 and hence the said certificate dated 21/01/2017 could not have been filed before the ld. A.O. on or before 26.09.2016. I fail to appreciate that on one hand the appellant has contended that he had furnished the details before the A.O. and on the other hand, the appellant has placidly furnished additional evidences without any petition under Rule 46A of the Act. Even more, in the said certificate, the amount of interest paid jointly by the co-owners is nowhere stated, leave apart the individual share of each co-owner which would have been determined based on the ratio of payments made towards the loan account by each co-owner. In the absence of any specific details and certificate as required u/s 24 of the Act, the disallowance of interest of Rs. 2,59,459/- u/s 24 made by the A.O. is hereby is confirmed."
5. We have gone through the observation of the Ld. CIT(A) and seems to us that the assessee had filed the necessary certificate to claim the interest u/s 24 of the Act,however neither the Assessing Officer nor the Ld. CIT(A) has examined it therefore, we are of the view that this issue should be remitted back to the file of the Assessing Officer to examine the interest certificate u/s 24 of the Act. Therefore we set aside the order of the Ld. CIT(A) and remit this issue back to the file of the Assessing Officer.The Ld. AO is directed to examine the certificate u/s 24 of the Act and allow the claim of the assessee in accordance with law.
6. In the result, statistical purposes the appeal of the assessee is treated to be allowed.
Order pronounced in the Court on 24.07.2019
Sd/- Sd/-
(A.T. VARKEY) (A.L.SAINI)
या यकसद य / JUDICIAL MEMBER लेखासद य / ACCOUNTANT MEMBER
दनांक/ Date: 24/07/2019
(SB, Sr.PS)
Pa g e | 3
Binod Kumar Daga
ITA No.40/Gaul/2018
Assessment Year:2014-15
Copy of the order forwarded to:
1. Binod Kumar Daga, Guwahati
2. ACIT, Circle-4, Guwahati
3. C.I.T(A)- 4. C.I.T.- Guwahati
5. CIT(DR), Gauhati Bench, Guwahati.
6. Guard File.
True copy
By Order
Senior Private Secretary / DDO/ H.O.O
ITAT, Gauhati Bench
Pa g e | 4
IN THE INCOME TAX APPELLATE TRIBUNAL
GAUHATI 'E'COURT, ATKOLKATA
BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.40/Gau/2018 ( नधारणवष / Assessment Year:2014-15) Binod Kumar Daga, Guwahati Vs. ACIT, Circle-4, Guwahati C/o Akash Trading Co, Dewan Patty-Fancy Bazar- Guwahati-
781001 थायीले खासं . /जीआइआरसं . /PAN/GIR No.: AFCPD 1881 R (Appellant) .. (Revenue) Appellant by : Shri B.M. Shethia, FCA Respondent by : Shri H. R. Singh, JCIT DR सुनवाईक तार ख/ Date of Hearing : 16/05/2019 घोषणाक तार ख/Date of Pronouncement : 24/07/2019 आदे श / O R D E R Per Dr. A. L. Saini:
The captioned appeal filed by the assessee , pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-2, Guwahati, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the 'Act') dated 26/09/2015.
2. Grounds of appeal raised by the Assessee are as follows:
1. For that the Learned Commissioner of Income Tax (Appeals)-2, Guwahati is erred in law as well as in facts in observing that appellant has failed to file any petition under Rule 46A in respect of document namely Certificate dated 21.01.2017 of the Federal Bank of India-Fancy Bazar-
Guwahati in respect of loan taken and interest paid to the bank for construction of Ware House under the name and style Daga Ware Housing at Amingaon which was constructed jointly with appellant's wife and thereby confirming the disallowance of interest claim of Rs. 2,59,459/- u/s Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 24 of I.T. Act while computing income from House property made by Assessing Officer, ignoring such loan utilized for construction of ware house from whom rental income received during the year at Rs. 37,88,580/- in the facts of the case without calling any explanation from the appellant in the facts of the case.
2. For the other grounds of law as well as facts may kindly be permitted at the time of hearing the appeal.
3. At the outset itself, the ld. Counsel for the assessee submitted that the ld. Assessing Officer made the disallowance of interest claimed u/s 24 of the Act to the tune of Rs. 2,59,459/-. The ld. Assessing Officer finally made the disallowance, observing that the assessee has not filed any detail in receipt of interest claim. The counsel submitted that the assessee has filed the necessary evidence to claim the interest u/s 24 of the Act during the assessment proceedings vide letter dated 16.06.2016 therefore the disallowance of interest so made by the Assessing Officer is based on mere suspicion and surmises. The ld. DR for the revenue fairly agreed that the assessee submitted interest certificate u/s 24 of the Act before the Assessing Officer, and also submitted bank statement and therefore, claimed interest u/s 24 of the Act,howeverthe Assessing Officer has ignored the same and did not take into account the interest certificate u/s 24 of the Act.
4. We have heard both the parties and perused the material available on record. We note that the assessee has submitted the certificate of interest claimed u/s 24 of the Act vide letter dated 16.06.2016 (vide PB 29 to 31),however, the Assessing Officer has ignored the same. We note that during the appellate proceedings the assessee has submitted the bank statement.We note that the assessee took loan from Federal Bankand the loan account has been closed on 03.09.2014. We note that the Ld. CIT(A) dismissed the appeal of the assessee observing the following:
" I have gone through the order of the ld. A.O. and find that the disallowance of interest claimed u/s 24 of I. T. Act of Rs. 2,59,459/- was made by the ld. A.O. by observing that no details in respect of interest claimed were filed. However, on the other hand, the ld. AR of the appellant has contended that evidences for claim of interest u/s 24 were filed during the course of assessment proceedings vide letter dated 16/06/2016. Therefore, the disallowance of interest so made by A.O. is based on mere suspicion and surmises.
Pa g e | 2 Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 After a perusal of the details furnished before the undersigned (as purportedly claimed to have been furnished before the ld. A.O. also), it is nowhere clear as to where the aggregate amount of interest claimed of Rs. 5,18,919/- is reflected. In deed, the appellant had furnished before the undersigned, without any petition under Rule 46A of the Income Tax Rules, a certificate dated 21/01/2017, from the Federal Bank that the loan account has been closed. Clearly the impugned order was passed in this case on 26.09.2016 and hence the said certificate dated 21/01/2017 could not have been filed before the ld. A.O. on or before 26.09.2016. I fail to appreciate that on one hand the appellant has contended that he had furnished the details before the A.O. and on the other hand, the appellant has placidly furnished additional evidences without any petition under Rule 46A of the Act. Even more, in the said certificate, the amount of interest paid jointly by the co-owners is nowhere stated, leave apart the individual share of each co-owner which would have been determined based on the ratio of payments made towards the loan account by each co-owner. In the absence of any specific details and certificate as required u/s 24 of the Act, the disallowance of interest of Rs. 2,59,459/- u/s 24 made by the A.O. is hereby is confirmed."
5. We have gone through the observation of the Ld. CIT(A) and seems to us that the assessee had filed the necessary certificate to claim the interest u/s 24 of the Act,however neither the Assessing Officer nor the Ld. CIT(A) has examined it therefore, we are of the view that this issue should be remitted back to the file of the Assessing Officer to examine the interest certificate u/s 24 of the Act. Therefore we set aside the order of the Ld. CIT(A) and remit this issue back to the file of the Assessing Officer.The Ld. AO is directed to examine the certificate u/s 24 of the Act and allow the claim of the assessee in accordance with law.
6. In the result, statistical purposes the appeal of the assessee is treated to be allowed.
Order pronounced in the Court on 24.07.2019
Sd/- Sd/-
(A.T. VARKEY) (A.L.SAINI)
या यकसद य / JUDICIAL MEMBER लेखासद य / ACCOUNTANT MEMBER
दनांक/ Date: 24/07/2019
(SB, Sr.PS)
Pa g e | 3
Binod Kumar Daga
ITA No.40/Gaul/2018
Assessment Year:2014-15
Copy of the order forwarded to:
1. Binod Kumar Daga, Guwahati
2. ACIT, Circle-4, Guwahati
3. C.I.T(A)- 4. C.I.T.- Guwahati
5. CIT(DR), Gauhati Bench, Guwahati.
6. Guard File.
True copy
By Order
Senior Private Secretary / DDO/ H.O.O
ITAT, Gauhati Bench
Pa g e | 4
IN THE INCOME TAX APPELLATE TRIBUNAL
GAUHATI 'E'COURT, ATKOLKATA
BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.40/Gau/2018 ( नधारणवष / Assessment Year:2014-15) Binod Kumar Daga, Guwahati Vs. ACIT, Circle-4, Guwahati C/o Akash Trading Co, Dewan Patty-Fancy Bazar- Guwahati-
781001 थायीले खासं . /जीआइआरसं . /PAN/GIR No.: AFCPD 1881 R (Appellant) .. (Revenue) Appellant by : Shri B.M. Shethia, FCA Respondent by : Shri H. R. Singh, JCIT DR सुनवाईक तार ख/ Date of Hearing : 16/05/2019 घोषणाक तार ख/Date of Pronouncement : 24/07/2019 आदे श / O R D E R Per Dr. A. L. Saini:
The captioned appeal filed by the assessee , pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-2, Guwahati, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the 'Act') dated 26/09/2015.
2. Grounds of appeal raised by the Assessee are as follows:
1. For that the Learned Commissioner of Income Tax (Appeals)-2, Guwahati is erred in law as well as in facts in observing that appellant has failed to file any petition under Rule 46A in respect of document namely Certificate dated 21.01.2017 of the Federal Bank of India-Fancy Bazar-
Guwahati in respect of loan taken and interest paid to the bank for construction of Ware House under the name and style Daga Ware Housing at Amingaon which was constructed jointly with appellant's wife and thereby confirming the disallowance of interest claim of Rs. 2,59,459/- u/s Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 24 of I.T. Act while computing income from House property made by Assessing Officer, ignoring such loan utilized for construction of ware house from whom rental income received during the year at Rs. 37,88,580/- in the facts of the case without calling any explanation from the appellant in the facts of the case.
2. For the other grounds of law as well as facts may kindly be permitted at the time of hearing the appeal.
3. At the outset itself, the ld. Counsel for the assessee submitted that the ld. Assessing Officer made the disallowance of interest claimed u/s 24 of the Act to the tune of Rs. 2,59,459/-. The ld. Assessing Officer finally made the disallowance, observing that the assessee has not filed any detail in receipt of interest claim. The counsel submitted that the assessee has filed the necessary evidence to claim the interest u/s 24 of the Act during the assessment proceedings vide letter dated 16.06.2016 therefore the disallowance of interest so made by the Assessing Officer is based on mere suspicion and surmises. The ld. DR for the revenue fairly agreed that the assessee submitted interest certificate u/s 24 of the Act before the Assessing Officer, and also submitted bank statement and therefore, claimed interest u/s 24 of the Act,howeverthe Assessing Officer has ignored the same and did not take into account the interest certificate u/s 24 of the Act.
4. We have heard both the parties and perused the material available on record. We note that the assessee has submitted the certificate of interest claimed u/s 24 of the Act vide letter dated 16.06.2016 (vide PB 29 to 31),however, the Assessing Officer has ignored the same. We note that during the appellate proceedings the assessee has submitted the bank statement.We note that the assessee took loan from Federal Bankand the loan account has been closed on 03.09.2014. We note that the Ld. CIT(A) dismissed the appeal of the assessee observing the following:
" I have gone through the order of the ld. A.O. and find that the disallowance of interest claimed u/s 24 of I. T. Act of Rs. 2,59,459/- was made by the ld. A.O. by observing that no details in respect of interest claimed were filed. However, on the other hand, the ld. AR of the appellant has contended that evidences for claim of interest u/s 24 were filed during the course of assessment proceedings vide letter dated 16/06/2016. Therefore, the disallowance of interest so made by A.O. is based on mere suspicion and surmises.
Pa g e | 2 Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 After a perusal of the details furnished before the undersigned (as purportedly claimed to have been furnished before the ld. A.O. also), it is nowhere clear as to where the aggregate amount of interest claimed of Rs. 5,18,919/- is reflected. In deed, the appellant had furnished before the undersigned, without any petition under Rule 46A of the Income Tax Rules, a certificate dated 21/01/2017, from the Federal Bank that the loan account has been closed. Clearly the impugned order was passed in this case on 26.09.2016 and hence the said certificate dated 21/01/2017 could not have been filed before the ld. A.O. on or before 26.09.2016. I fail to appreciate that on one hand the appellant has contended that he had furnished the details before the A.O. and on the other hand, the appellant has placidly furnished additional evidences without any petition under Rule 46A of the Act. Even more, in the said certificate, the amount of interest paid jointly by the co-owners is nowhere stated, leave apart the individual share of each co-owner which would have been determined based on the ratio of payments made towards the loan account by each co-owner. In the absence of any specific details and certificate as required u/s 24 of the Act, the disallowance of interest of Rs. 2,59,459/- u/s 24 made by the A.O. is hereby is confirmed."
5. We have gone through the observation of the Ld. CIT(A) and seems to us that the assessee had filed the necessary certificate to claim the interest u/s 24 of the Act,however neither the Assessing Officer nor the Ld. CIT(A) has examined it therefore, we are of the view that this issue should be remitted back to the file of the Assessing Officer to examine the interest certificate u/s 24 of the Act. Therefore we set aside the order of the Ld. CIT(A) and remit this issue back to the file of the Assessing Officer.The Ld. AO is directed to examine the certificate u/s 24 of the Act and allow the claim of the assessee in accordance with law.
6. In the result, statistical purposes the appeal of the assessee is treated to be allowed.
Order pronounced in the Court on 24.07.2019
Sd/- Sd/-
(A.T. VARKEY) (A.L.SAINI)
या यकसद य / JUDICIAL MEMBER लेखासद य / ACCOUNTANT MEMBER
दनांक/ Date: 24/07/2019
(SB, Sr.PS)
Pa g e | 3
Binod Kumar Daga
ITA No.40/Gaul/2018
Assessment Year:2014-15
Copy of the order forwarded to:
1. Binod Kumar Daga, Guwahati
2. ACIT, Circle-4, Guwahati
3. C.I.T(A)- 4. C.I.T.- Guwahati
5. CIT(DR), Gauhati Bench, Guwahati.
6. Guard File.
True copy
By Order
Senior Private Secretary / DDO/ H.O.O
ITAT, Gauhati Bench
Pa g e | 4
IN THE INCOME TAX APPELLATE TRIBUNAL
GAUHATI 'E'COURT, ATKOLKATA
BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.40/Gau/2018 ( नधारणवष / Assessment Year:2014-15) Binod Kumar Daga, Guwahati Vs. ACIT, Circle-4, Guwahati C/o Akash Trading Co, Dewan Patty-Fancy Bazar- Guwahati-
781001 थायीले खासं . /जीआइआरसं . /PAN/GIR No.: AFCPD 1881 R (Appellant) .. (Revenue) Appellant by : Shri B.M. Shethia, FCA Respondent by : Shri H. R. Singh, JCIT DR सुनवाईक तार ख/ Date of Hearing : 16/05/2019 घोषणाक तार ख/Date of Pronouncement : 24/07/2019 आदे श / O R D E R Per Dr. A. L. Saini:
The captioned appeal filed by the assessee , pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-2, Guwahati, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the 'Act') dated 26/09/2015.
2. Grounds of appeal raised by the Assessee are as follows:
1. For that the Learned Commissioner of Income Tax (Appeals)-2, Guwahati is erred in law as well as in facts in observing that appellant has failed to file any petition under Rule 46A in respect of document namely Certificate dated 21.01.2017 of the Federal Bank of India-Fancy Bazar-
Guwahati in respect of loan taken and interest paid to the bank for construction of Ware House under the name and style Daga Ware Housing at Amingaon which was constructed jointly with appellant's wife and thereby confirming the disallowance of interest claim of Rs. 2,59,459/- u/s Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 24 of I.T. Act while computing income from House property made by Assessing Officer, ignoring such loan utilized for construction of ware house from whom rental income received during the year at Rs. 37,88,580/- in the facts of the case without calling any explanation from the appellant in the facts of the case.
2. For the other grounds of law as well as facts may kindly be permitted at the time of hearing the appeal.
3. At the outset itself, the ld. Counsel for the assessee submitted that the ld. Assessing Officer made the disallowance of interest claimed u/s 24 of the Act to the tune of Rs. 2,59,459/-. The ld. Assessing Officer finally made the disallowance, observing that the assessee has not filed any detail in receipt of interest claim. The counsel submitted that the assessee has filed the necessary evidence to claim the interest u/s 24 of the Act during the assessment proceedings vide letter dated 16.06.2016 therefore the disallowance of interest so made by the Assessing Officer is based on mere suspicion and surmises. The ld. DR for the revenue fairly agreed that the assessee submitted interest certificate u/s 24 of the Act before the Assessing Officer, and also submitted bank statement and therefore, claimed interest u/s 24 of the Act,howeverthe Assessing Officer has ignored the same and did not take into account the interest certificate u/s 24 of the Act.
4. We have heard both the parties and perused the material available on record. We note that the assessee has submitted the certificate of interest claimed u/s 24 of the Act vide letter dated 16.06.2016 (vide PB 29 to 31),however, the Assessing Officer has ignored the same. We note that during the appellate proceedings the assessee has submitted the bank statement.We note that the assessee took loan from Federal Bankand the loan account has been closed on 03.09.2014. We note that the Ld. CIT(A) dismissed the appeal of the assessee observing the following:
" I have gone through the order of the ld. A.O. and find that the disallowance of interest claimed u/s 24 of I. T. Act of Rs. 2,59,459/- was made by the ld. A.O. by observing that no details in respect of interest claimed were filed. However, on the other hand, the ld. AR of the appellant has contended that evidences for claim of interest u/s 24 were filed during the course of assessment proceedings vide letter dated 16/06/2016. Therefore, the disallowance of interest so made by A.O. is based on mere suspicion and surmises.
Pa g e | 2 Binod Kumar Daga ITA No.40/Gaul/2018 Assessment Year:2014-15 After a perusal of the details furnished before the undersigned (as purportedly claimed to have been furnished before the ld. A.O. also), it is nowhere clear as to where the aggregate amount of interest claimed of Rs. 5,18,919/- is reflected. In deed, the appellant had furnished before the undersigned, without any petition under Rule 46A of the Income Tax Rules, a certificate dated 21/01/2017, from the Federal Bank that the loan account has been closed. Clearly the impugned order was passed in this case on 26.09.2016 and hence the said certificate dated 21/01/2017 could not have been filed before the ld. A.O. on or before 26.09.2016. I fail to appreciate that on one hand the appellant has contended that he had furnished the details before the A.O. and on the other hand, the appellant has placidly furnished additional evidences without any petition under Rule 46A of the Act. Even more, in the said certificate, the amount of interest paid jointly by the co-owners is nowhere stated, leave apart the individual share of each co-owner which would have been determined based on the ratio of payments made towards the loan account by each co-owner. In the absence of any specific details and certificate as required u/s 24 of the Act, the disallowance of interest of Rs. 2,59,459/- u/s 24 made by the A.O. is hereby is confirmed."
5. We have gone through the observation of the Ld. CIT(A) and seems to us that the assessee had filed the necessary certificate to claim the interest u/s 24 of the Act,however neither the Assessing Officer nor the Ld. CIT(A) has examined it therefore, we are of the view that this issue should be remitted back to the file of the Assessing Officer to examine the interest certificate u/s 24 of the Act. Therefore we set aside the order of the Ld. CIT(A) and remit this issue back to the file of the Assessing Officer.The Ld. AO is directed to examine the certificate u/s 24 of the Act and allow the claim of the assessee in accordance with law.
6. In the result, statistical purposes the appeal of the assessee is treated to be allowed.
Order pronounced in the Court on 24.07.2019
Sd/- Sd/-
(A.T. VARKEY) (A.L.SAINI)
या यकसद य / JUDICIAL MEMBER लेखासद य / ACCOUNTANT MEMBER
दनांक/ Date: 24/07/2019
(SB, Sr.PS)
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Binod Kumar Daga
ITA No.40/Gaul/2018
Assessment Year:2014-15
Copy of the order forwarded to:
1. Binod Kumar Daga, Guwahati
2. ACIT, Circle-4, Guwahati
3. C.I.T(A)- 4. C.I.T.- Guwahati
5. CIT(DR), Gauhati Bench, Guwahati.
6. Guard File.
True copy
By Order
Senior Private Secretary / DDO/ H.O.O
ITAT, Gauhati Bench
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