OPENDER GUPTA,NEW DELHI vs. ACIT CIRCLE-39(1), NEW DELHI

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ITA 7278/DEL/2019Status: DisposedITAT Delhi15 September 2021AY 2014-155 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 24 is not applicable as the property was rented out, and the assessee is eligible for the full interest deduction on the housing loan. The deduction under Section 80C for the principal amount was also allowed.

What were the facts?

The assessee claimed interest on a housing loan and deduction under Section 80C. Initially, the Assessing Officer disallowed the interest claim due to lack of documentation. The CIT(A) restricted the interest deduction to Rs. 1,50,000/-.

What were the issues?

Whether the assessee is eligible for full deduction of interest on housing loan for a rented property and deduction under Section 80C for the principal repayment.

Which sections of the Income-tax Act were involved?

Section 24,Section 80C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘SMC’ BENCH,

Before: SHRI N.K. BILLAIYA

For Appellant: Shri Subhash Singhal, CA
Hearing: 15.09.2021Pronounced: 15.09.2021

PER N.K. BILLAIYA, ACCOUNTANT MEMBER:

1.

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] – 13, New Delhi dated 25.06.2019 pertaining to assessment year 2014-15.

2.

The assessee has raised as many as six grounds of appeal

. At the very outset, the ld. counsel for the assessee stated that he is not pressing Ground Nos. 1 to 4. The same are dismissed as not pressed.

3. Ground No. 5 relates to claim of interest on housing loan amounting to Rs. 6,58,556/-.

4.

During the course of scrutiny assessment proceedings, no documentary evidence could be furnished by the assessee as it was brought to the notice of the Assessing Officer that the Interest Certificate on housing loan was to be received from the bank.

5.

On receiving no such certificate, the Assessing Officer did not entertain the claim of interest on housing loan amounting to Rs. 6,58,556/-.

6.

The assessee carried the matter before the ld. CIT(A) and furnished the certificate from State Bank of Patiala. However, the ld. CIT(A) was of the firm belief that interest only upto Rs.1,50,000/- is allowable on housing loan u/s 24 read with second proviso and accordingly, restricted the deduction to Rs.1,50,000/-.

7.

Before me, the ld. counsel for the assessee vehemently stated that section 24 is not at all applicable on the facts of the case, in as much as, housing loan was not taken for self occupied property but for property given on rent on which rental income has been accepted by the Assessing Officer.

8.

In my considered opinion, once the rental income has been accepted by the Assessing Officer, the assessee is eligible for statutory deduction and, in addition, deduction for interest paid on loan for the purchase of house property. Considering the Certificate of State bank of Patiala, I direct the Assessing Officer to allow the claim of interest of Rs.6,58,556/-. Ground No. 5 is, accordingly, allowed.

9.

Ground No. 6 relates to the claim of deduction u/s 80C of the Act. I find that the claim is in respect of principal amount paid in respect of housing loan and such principal amount is specifically mentioned in the certificate of State Bank of Patiala. I direct the Assessing Officer to allow eligible claim of deduction u/s 80C of the Act on the principal amount paid of Rs. 1,60,492/– as per the provisions of the law. Ground No. 6 is accordingly, allowed.

10.

In the result the appeal of the assessee in is allowed.

The order is pronounced in the open court on 15.09.2021 in the presence of both the representatives.

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