Section 24(b) of the Income Tax Act

Income-tax Act, 2025: s.22

Section 24(b) falls under section 24 of the Income-tax Act, 1961, which corresponds to section 22 (Deductions from income from house property) of the Income-tax Act, 2025.

Read section 22 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 24(b) is CIT v. Mithilesh Kumari (92 ITR 9), cited in 54 of the 545 judgments on BharatTax that turn on this section.

Leading authorities on Section 24(b)

CIT v. Mithilesh Kumari
92 ITR 9 · 1973 · High Court
54
citing judgments

Interest on borrowed capital used to acquire an asset, paid year after year until the date of sale, must be capitalized and included in the cost of acquisition for computing capital gains.

CIT v. Cocanada Radhaswami Bank Ltd.
57 ITR 306 · 1965 · Supreme Court
46
citing judgments

The nature of the activity giving rise to income is fundamental in determining the deductibility of expenses. Interest on loans for acquiring properties held as current assets is a deductible business expenditure if incurred for business purposes.

CIT v. Mythreyi Pai
152 ITR 247 · 1985 · High Court
44
citing judgments

Expenditure incurred towards the purchase of shares is a capital expenditure and therefore, interest expenditure incurred on such purchases is not eligible for deduction under Section 36(1)(iii) of the Income Tax Act.

CIT v. Hughes Escorts Communications Ltd.
311 ITR 253 · 2009 · High Court
29
citing judgments

Expenses incurred prior to business commencement but after business setup are deductible as revenue expenses, as the setting up and commencement dates of a business are not necessarily the same.

UOI v. Wood Papers Ltd.
4 SCC 256 · 1990 · Reported
29
citing judgments

In the interpretation of taxing statutes, exemption provisions are to be construed strictly, but once eligibility criteria are met, the exemption notification should be liberally construed to give it full play.

CIT v. Jaypee DSC Ventures Ltd.
335 ITR 132 · 2011 · High Court
28
citing judgments

Interest income generated from fixed deposits, if purchased due to business exigencies or for the purpose of carrying on business activities, is to be treated as business income and not income from other sources.

CIT v. Surinder Pal Anand, Surinder Pal Anand
242 CTR 61 · 2011 · High Court
20
citing judgments

When an assessee opts for the presumptive taxation scheme under Section 44AD of the Income Tax Act, offering income at a specified percentage of gross receipts, they are exempt from maintaining books of account and are not obligated to explain individual entries of cash deposits unless such entries lack nexus with the gross receipts.

CIT v. Taj International Jewellers
20 Taxmann.com 1 · 2012 · High Court
17
citing judgments

Interest paid on borrowed funds used to purchase FDRs is deductible as an expenditure incurred wholly and exclusively for earning taxable interest income, establishing a clear nexus between borrowing and earning interest.

CIT v. K. Raja Gopala Rao
252 ITR 459 · 2001 · High Court
15
citing judgments

Mortgage expenses and interest payable on a mortgage used as part of the purchase consideration are included in the cost of acquisition for computing capital gains on the transfer of property.

CIT v. Runwal Developers (P) Ltd.
15 Taxmann.com 196 · 2011 · High Court
14
citing judgments

Maintenance charges received for the promotion and upkeep of a mall are business receipts assessable under the head 'Income from business'. This applies even if part of the premises is sold on an outright sale basis.

Judgments on Section 24(b)

Ujjal Sinha, Kolkata vs. DCIT, Central Circle 4(1), Kolkata

In the result, all the captioned appeals of the assessee are allowed

ITA 1935/KOL/2025[2012-2013]Status: DisposedITAT Kolkata13 Nov 2025AY 2012-2013

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1931, 1932, 1934 & 1935/Kol/2025 Assessment Years: 2008-09, 2009-10, 2012-13 & 2012-13 Ujjal Sinha……………….……..……………………….……….……….……Appellant 57/3, Ballygunge Circular Road, Ballygunge S.O, Kol- 700019.. [Pan: Aeips4499F] Vs. Dcit, Central Circle-4(1), Kolkata….……..……………….....……...…..…..Respondent Appearances By: Shri S. K. Tulsiyan, Advocate & Lata Goyal, Ca, Appeared On Behalf Of The Appellant. Shri Sanat Kr. Raha, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 28, 2025 Date Of Pronouncing The Order : November 13, 2025 Order Per Pradip Kumar Choubey: The Captioned Appeals Have Been Preferred By The Assessee Against The Separate Orders Dated 05.08.25, 05.08.25, 04.08.25 & 04.08.25 Of The National Faceless Appeal Centre [Hereinafter Referred To As The “Ld. Cit(A)”] Passed U/S 250 Of The Income Tax Act, 1961 [Hereinafter Referred To As The “Act”] Confirming Penalty U/S 271(1)(C) Of The Act Levied By The Assessing Officer. Since The Issues Involved In All The Appeals Are Common & Relate To The Same Assessee, Therefore, These Appeals Have Been Heard Together & Are Being Disposed Of By This Consolidated Order.

Section 139(1)Section 143(2)Section 153ASection 24Section 250Section 271(1)(c)Section 274

Ujjal Sinha, Kolkata vs. DCIT, Central Circle 4(1), Kolkata

In the result, all the captioned appeals of the assessee are allowed

ITA 1934/KOL/2025[2012-2013]Status: DisposedITAT Kolkata13 Nov 2025AY 2012-2013

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1931, 1932, 1934 & 1935/Kol/2025 Assessment Years: 2008-09, 2009-10, 2012-13 & 2012-13 Ujjal Sinha……………….……..……………………….……….……….……Appellant 57/3, Ballygunge Circular Road, Ballygunge S.O, Kol- 700019.. [Pan: Aeips4499F] Vs. Dcit, Central Circle-4(1), Kolkata….……..……………….....……...…..…..Respondent Appearances By: Shri S. K. Tulsiyan, Advocate & Lata Goyal, Ca, Appeared On Behalf Of The Appellant. Shri Sanat Kr. Raha, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 28, 2025 Date Of Pronouncing The Order : November 13, 2025 Order Per Pradip Kumar Choubey: The Captioned Appeals Have Been Preferred By The Assessee Against The Separate Orders Dated 05.08.25, 05.08.25, 04.08.25 & 04.08.25 Of The National Faceless Appeal Centre [Hereinafter Referred To As The “Ld. Cit(A)”] Passed U/S 250 Of The Income Tax Act, 1961 [Hereinafter Referred To As The “Act”] Confirming Penalty U/S 271(1)(C) Of The Act Levied By The Assessing Officer. Since The Issues Involved In All The Appeals Are Common & Relate To The Same Assessee, Therefore, These Appeals Have Been Heard Together & Are Being Disposed Of By This Consolidated Order.

Section 139(1)Section 143(2)Section 153ASection 24Section 250Section 271(1)(c)Section 274

Ujjal Sinha, Kolkata vs. DCIT, Central Circle 4(1), Kolkata

In the result, the appeal filed by the assessee is allowed

ITA 1933/KOL/2025[2011-2012]Status: DisposedITAT Kolkata13 Nov 2025AY 2011-2012

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyassessment Year: 2011-12 Ujjal Sinha……..…………………..………………….……….……….……Appellant 57/3, Ballygunge Circular Road, Ballygunge S.O, Kolkata 19. [Pan: Aeips4499F] Vs. Dcit, Central Circle-4(1), Kolkata……………………….....……...…..…..Respondent Appearances By: Shri S. K. Tulsiyan, Advocate & Lata Goyal, Ca, Appeared On Behalf Of The Appellant. Shri Sanat Kr. Raha, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 28, 2025 Date Of Pronouncing The Order : November 13, 2025 Order Per Pradip Kumar Choubey: This Appeal Filed By The Assessee Is Directed Against The Order Dated 05.08.2025 Of The Cit (Appeals)-27, Kolkata [‘Cit(A)’] Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) For The Assessment Year 2011–12. 2. Brief Facts Of The Case Are That The Assessee Had Filed His Return Of Income U/S.139(1) Of The Act For The A.Y. 2011-12 On 11/02/2012 Declaring A Total Income Of Rs.19,12,432/-. In The Instant Case, A Search & Seizure Operation Was Conducted On 24.01.2012 In The Residential Premises Of The Assessee Wherein No Incriminating Material Was Found. Thereafter. The Assessment Was Completed U/S 153A/143(3) Of The Act On 31/03/2014 Assessing The Total Income At Rs.92,12,430/- Wherein The Following Two Additions To The Total Income Were Made:

Section 139(1)Section 153ASection 24Section 250Section 271(1)(c)

Ujjal Sinha, Kolkata vs. DCIT, Central Circle 4(1), Kolkata

In the result, all the captioned appeals of the assessee are allowed

ITA 1932/KOL/2025[2009-2010]Status: DisposedITAT Kolkata13 Nov 2025AY 2009-2010

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1931, 1932, 1934 & 1935/Kol/2025 Assessment Years: 2008-09, 2009-10, 2012-13 & 2012-13 Ujjal Sinha……………….……..……………………….……….……….……Appellant 57/3, Ballygunge Circular Road, Ballygunge S.O, Kol- 700019.. [Pan: Aeips4499F] Vs. Dcit, Central Circle-4(1), Kolkata….……..……………….....……...…..…..Respondent Appearances By: Shri S. K. Tulsiyan, Advocate & Lata Goyal, Ca, Appeared On Behalf Of The Appellant. Shri Sanat Kr. Raha, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 28, 2025 Date Of Pronouncing The Order : November 13, 2025 Order Per Pradip Kumar Choubey: The Captioned Appeals Have Been Preferred By The Assessee Against The Separate Orders Dated 05.08.25, 05.08.25, 04.08.25 & 04.08.25 Of The National Faceless Appeal Centre [Hereinafter Referred To As The “Ld. Cit(A)”] Passed U/S 250 Of The Income Tax Act, 1961 [Hereinafter Referred To As The “Act”] Confirming Penalty U/S 271(1)(C) Of The Act Levied By The Assessing Officer. Since The Issues Involved In All The Appeals Are Common & Relate To The Same Assessee, Therefore, These Appeals Have Been Heard Together & Are Being Disposed Of By This Consolidated Order.

Section 139(1)Section 143(2)Section 153ASection 24Section 250Section 271(1)(c)Section 274