MEETABEN PRAFULBHAI MANDLIA,,RAJKOT-GUJARAT vs. THE INCOME TAX OFFICER, WARD-2(3)(1),, RAJKOT-GUJARAT

None appeared on behalf of the assessee at the time of hearing. Therefore, we proceed to dispose of appeal ex parte qua assessee-appellant after hearing the ld.DR and considering the material available on record.

Grounds of appeal taken by the assessee are not in consonance with Rule 8 of the Income Tax (Appellate Tribunal) Rules, 1963 - they are descriptive and argumentative in nature. In brief, sole grievance of the

Brief facts of the case are that the assessee is an individual and having rental income from house property. She has filed return of income on 21.10.2013 declaring total income at Rs.5,79,010/-. In the scrutiny assessment it was revealed to the AO that the assessee has claimed interest on borrowed capital under section 24(b) at Rs.3,57,379/-. The same was added by the AO to the income of the assessee on the ground that the assessee’s representative during the assessment proceedings agreed for the addition as the claim was wrongly made under section 24(b) of the Act. Appeal by the assessee before the ld.first appellate authority did not succeed. The assessee is now before the Tribunal.

Before us, the assessee filed written submissions pleading interalia that the assessee is showing rental income and income from other source. She has earned interest income of Rs.1,95,722/- from fixed deposit, which is assessed to tax. The assessee has taken overdraft loan from the bank, and paid an interest of Rs.3,57,378/-, and therefore, atleast netting of the interest income be allowed, and the balance amount be disallowed. On the other hand, the ld.DR relied on the orders of the Revenue authorities.

We have heard the ld.DR and gone through the written submissions filed by the assessee. We find that the Revenue has made addition on the ground that representative of the assessee has agreed for the impugned addition as the same was wrongly claimed. So far as claim of deduction under section 24(b) is concerned, the same is admitted to be inadmissible. Alternative pleading of the assessee before us is that, at the most, netting of the interest income be allowed, and the balance amount be disallowed. But such claim has to be decided under the provisions of section 57(iii). The

In the result, the appeal of the assessee is dismissed. Order pronounced in the Court on 3rd October, 2019 at Ahmedabad.