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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI MAHAVIR SINGHAND SHRI S.R. RAGHUNATHA
आदेश /O R D E R
PER MAHAVIR SINGH, VICE PRESIDENT:
This appeal by the assessee is arising out of the Revision order passed by the Principal Commissioner of Income Tax, Coimbatore-1, in Order No.ITBA/REV/F/REV5/2023-24/1061308989(1) dated 22.02.2024. The assessment was framed by the Additonal/Joint/Deputy/Assistant Commissioner of Income Tax/ Income Tax Officer, National e-Assessment Centre, Delhi for the
- 2 - ITA No.597/Chny/2024 assessment year 2018-19 u/s.143(3) r.w.s.143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 12.04.2021.
The only issue in this appeal of assessee is as regards to the order of revision order passed by the PCIT u/s.263 of the Act revising the assessment for the reason that the assessee has wrongly claimed deduction of interest amounting to Rs.2,00,000/- u/s.24 of the Act and allowed by the AO and hence, AO’s order is erroneous insofar as prejudicial to the interest of Revenue.
We have heard rival contentions and gone through facts and circumstances of the case. The AO while framing assessment has specifically allowed the claim of assessee of Rs.2,00,000/- from ‘income from house property’ as the assessee was having a self- occupied house property. We have gone through the facts of the case and noted that the assessee is having two house, one from where he has declared rental income of one-halfth share at Rs.90,000/- and claimed standard deduction of Rs.27,000/- and thereby gross income from house property was declared at Rs.63,000/-. This let out property is scheduled at 14/16, Muthurangam Street, Erode. Further, another property which is self-
- 3 - ITA No.597/Chny/2024 occupied property for which assessee has paid interest component of Rs.8,91,726/- is house property constructed at Site No.3, Survey No.1203/1-6, 1202/5/1, Door 1, Gandhiji Stree-3, Kollampalayam, Erode. Against this house property, assessee has restricted his claim of Rs.2,00,000/- u/s.24 of the Act. This is an allowable claim and assessee has rightly claimed and AO has rightly allowed. The revision initiated by the PCIT and the revision order passed by PCIT is without any basis and hence, we quash the revision order and allow the appeal of assessee.
In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open court at the time of hearing on 11th June, 2024 at Chennai.
Sd/- Sd/- (महावीर �सह ) (एस. आर. रघुनाथा) (MAHAVIR SINGH) (S.R. RAGHUNATHA) उपा�य� /VICE PRESIDENT लेखा सद�य/ACCOUNTANT MEMBER चे�ई/Chennai, �दनांक/Dated, the 11th June, 2024 RSR आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु� /CIT, Chennai/Coimbatore/Salem/Madurai 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF.