BHAVESHKUMAR VINODBHAI PATEL,HIMATNAGAR V. THE ACIT, CIRCLE, HIMATNAGAR

ITA 1221/AHD/2024

AI Insights

The case involves an appeal by Bhaveshkumar Vinodbhai Patel against the order of the Commissioner of Income Tax (Appeals)-11, Ahmedabad, which upheld the disallowance of Rs. 7,58,826 by the Assessing Officer. The disallowance was related to the excess interest claimed on a loan from Kotak Bank, which was used for a property generating rental income. The Assessing Officer had restricted the interest deduction to 20%, citing that the loan was sanctioned to five persons. The Tribunal, however, noted that similar claims had been allowed in previous and subsequent years, and no substantial change in circumstances warranted a different treatment for the assessment year 2017-18.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472318 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 13-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. DHARANI NATH
• Assessee Lawyers: DHRUNAL BHATT; GULAB THAKOR
• Section: 143(3); 250

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ SMC, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC” BENCH, AHMEDABAD ] BEFORE DR. BRR KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं /ITA No.1221/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2017-18 Bhaveshkumar Vinodbhai Patel Asian Parivar Nr. Mahakali Mandir Road Mahavirnagar Himatnagar – 383 001 (Gujarat) बनाम / v/s. The ACIT, Circle, Himatnagar -383 001 Gujarat \u0013थायी लेखा सं./PAN:AJEPP 8838 I (अपीलाथ\u0017/ Appellant) (\u0018\u0019 यथ\u0017/ Respondent) Assessee by : Shri Dhrunal Bhatt, AR & Shri Gulab Thakor, AR Revenue by : Shri C. Dharani Nath, Sr.DR सुनवाई की तारीख/Date of Hearing : 18/11/2024 घोषणा की तारीख /Date of Pronouncement: 22/11/2024 आदेश/O R D E R PER DR. BRR KUMAR, VICE PRESIDENT This is an appeal filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals)-11, Ahmedabad [CIT(A)] vide order dated 19/04/2023 passed for the Assessment Year (AY) 2017-18. 2. The grounds of appeal taken by the assessee are as under:- 1. In law and on the facts and in the circumstances of the case, the order u/s 250 of the Act passed by the Ld. CIT (A) is without providing sufficient opportunity of being heard to the appellant. ITA No.1221/Ahd/2024 Bhaveshkumar Vinodbhai Patel vs. ACIT Asst. Year : 2017-18 2 2. In law and in the facts and circumstances in the case of the appellant, the Ld. CIT(A) has grossly erred in upholding addition of Rs. 7,58,826/ made in order passed u/s 143(3) on account of disallowance of excess interest on loan taken from Kotak Bank, claimed by the appellant while computing income from house property. 3. The appellant craves leave to add to alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal. 3. Brief facts of the case are that the assessee has filed his e-return of income on 12/03/2018 for the year under consideration. Declaring total income of Rs.19,36,140/-. The assessee is having in respect of income for rented property against which the assessee has claimed 50% of the loan interest u/s.24 of the Income Tax, Act, 1961 (“the Act”). The Assessing Officer recomputed the income from house property restricting the deduction of interest to 20% on the ground that the housing loan was sanctioned to 5 persons. 4. We have heard both the parties and perused the material available on record. We find that the CIT(A) upheld the order of the AO as the assessee has not submitted any details to substantiate the claim of 50%. The similar matter has come up before the AO in the AY 2016-17 and during the course of proceedings u/s.148 of the Act, after due examination ,the interest claimed by the assessee has been allowed. It was also brought to our notice that the similar allowance has been made by the Revenue Authorities in the subsequent year. It is also a fact on record that the repayments have been made by the assessee. Hence, keeping in view, the orders of the Revenue Authorities for the earlier years as well as the succeeding years, we hold that no disallowance during the instant year is called for. ITA No.1221/Ahd/2024 Bhaveshkumar Vinodbhai Patel vs. ACIT Asst. Year : 2017-18 3 5. In the result, the appeal of the assessee is allowed. Order pronounced in the Court on 22nd November, 2024 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIALMEMBER ( DR. BRR KUMAR ) VICE PRESIDENT टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \u001fितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ! / The Appellant 2. \u001f\"थ! / The Respondent. 3. संबंिधत आयकर आयु$ / Concerned CIT 4. आयकर आयु$ ) अपील ( / The CIT(A)- 11, Ahmedabad 5. िवभागीय \u001fितिनिध अिधकरण अपीलीय आयकर /DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स\"ािपत \u001fित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation pad attached with the file : 20.11.2024 2. Date on which the typed draft is placed before the Dictating Member. : 20.11.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 22.11.24 7. Date on which the file goes to the Bench Clerk. : 22.11.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "