SHRI RAM MOHAN PRATHIMA,CHENNAI vs. ACIT, NCC-5, CHENNAI

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ITA 2821/CHNY/2019Status: DisposedITAT Chennai09 December 2020AY 2013-143 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 found that the assessee had indeed borrowed funds and paid interest for the flat purchase. The Assessing Officer's denial of the deduction was not justified.

What were the facts?

The assessee claimed deduction for interest paid on a loan taken to purchase a flat. The Assessing Officer denied the claim for lack of a certificate, despite the assessee having borrowed funds and paid interest.

What were the issues?

Whether the interest paid on a loan for purchasing a flat is deductible when the assessee has failed to produce a specific certificate but has otherwise proven the loan and interest payment.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ (SMC

Before: SHRI V. DURGA RAO

Hearing: 09.12.2020Pronounced: 18.12.2020

आदेश / O R D E R

PER V. DURGA RAO, JUDICIAL MEMBER:

1.

This appeal filed by the assessee is against the order of the learned Commissioner of Income Tax (Appeals)-5, Chennai in dated 30.08.2019 relevant to the Assessment Year 2013 - 2014.

2 -: 2. The only issue involved in this appeal relates to the addition of Rs.5,07,585/-. The case of the Assessee is that he has purchased a flat at McNochols Road, Egmore, Chennai by borrowing the funds from Bank of Baroda and Indian Overseas Bank and has paid the interest. When the Assessee has claimed the interest as deduction, the Assessing Officer has denied the claim of the Assessee on the ground that the Assessee has failed to produce a Certificate that he has borrowed funds from the Bank for the purpose of purchasing the flat. Subsequently, the matter was put up to the learned Commissioner of Income Tax (Appeals) and the Hon’ble Income Tax Appellate Tribunal and once again the matter had come before the Assessing Officer. Hon’ble Income Tax Appellate Tribunal had set aside the matter and remitted the same to the file of the Assessing Officer to adjudicate afresh. But again the Assessing Officer has passed the same order and denied the claim of the Assessee.

3.

We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below.

4.

In the paper-book at Page No.3 to 7, it shows that the Assessee had borrowed the funds and paid the interest thereon. It is a fact that the Assessee had purchased a flat. The Assessing Officer has not doubted 3 -: towards the purchase of the flat by the Assessee and the payment of interest too. On these facts and circumstances of the case, we are of the opinion that the Assessing Officer has not justified in denying the deduction claimed by the Assessee. Therefore, we set aside the order passed by the learned Commissioner of Income Tax (Appeals) and we allow the interest deduction claimed by the assessee. Accordingly, the appeal filed by the Assessee is allowed.

5.

In the result, the appeal of the Assessee in is allowed.

Order pronounced on 18th December, 2020 in Chennai.

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