THE INCOME TAX OFFICER,WARD-1(2)(3),, AHMEDABAD vs. SMT. MAMTA RAJIVKUMAR AGARWAL, AHMEDABAD

In the above matter, the Tribunal has passed an Order dated 11/11/2022. However, it has come to the noticed that there are certain typographical errors crept in the order particularly at page no. 11 in para 17.1 and 18.

i. At Page No. 11 in para 17.1 in the last line of the order, it is inadvertently mentioned as “ground of appeal of the assessee is allowed”. In fact, it should be read as “ground of appeal of the Revenue is dismissed” ii. Similarly, at page no. 11 in the last concluding para 18 of the order, it is mentioned as “In the result, the appeal filed by the assessee is allowed.” However, it should be read as “In the result, the appeal filed by the Revenue is dismissed”

“17.1 On perusal of the above provisions, we note that there is no mention about the payment of the interest cost on the housing loan. In other words, it is not necessary to make the payment by the assessee on the money borrowed by him for acquiring the housing loan. What is necessary is this that the money should have been borrowed by the assessee for the purchase of the property on which the interest is payable. As far as, borrowing and the interest thereon is concerned, there is no dispute that the interest-bearing fund has been used by the assessee for acquiring the house property. Thus, to our understanding, the provisions of section 24(b) of the Act have been duly complied with as source of payment for the interest is known i.e. the husband of the assessee. Accordingly, we are of the view that the assessee cannot be denied the benefit of deduction with respect to the interest expenses provided under the provisions of section 24(b) of the Act. Hence, the ground of appeal of the Revenue is dismissed.

Order pronounced in the Court on 29/11/2022 at Ahmedabad.