Deba Prasad Das, Bhubaneswar V. ITO, Bhubaneswar

ITA 164/CTK/2014

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4636 (ITAT-CUTTACK)
• Duration Of Justice: 5 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2019
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 12-05-2014
• Court: TRIBUNAL
• Department Lawyers: RABIN CHOUDHURY
• Assessee Lawyers: D K SHETH
• Keywords: Gift; Salary income; Set aside
• Section: 10; 11

Judgement Text

D , , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH , CUTTACK [ , . . , BEFORE SHRI SUNIL KUMAR YADAV , J M & SHRI B.P.JAIN , A M ./ ITA NO. 164 /CTK/201 4 ( [ [ / ASSESSMENT YEAR S : 20 10 - 20 11 ) DEBA PRASAD DAS, FLAT NO.502, AMRITA RESIDENCY APARTMENTS BEHIND HOTEL PAL HEIGHTS, JAYDEV VIHAR, BHUBANESWAR - 751013 VS. ITO WARD - 1(3), BHUBANESWAR ./ ./ PAN/GIR NO. : A COPD 7638 M ( / APPELLANT ) .. ( / RESPONDENT ) [ /ASSESSEE BY : SHRI D.K.SHETH /REVENUE BY : SHRI RA B IN CHOUDHURY / DATE OF HEARING : 2 7 TH MAY , 201 5 / DATE OF PRONOUNCEMENT 29 TH MA Y ,2015 / O R D E R PER SUNIL KUMAR YADAV (J.M) : TH IS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A ) - I, BHUBANESWAR, DATED 13 - 3 - 2014 FOR THE ASSESSMENT YEAR 20 10 - 20 11 ON SOLITARY GROUND THAT THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 75,518/ - AS INTEREST PAID ON THE LOAN BORROWED FOR THE CONSTRUCTION OF HOUSE. OTHER GROUND RELATE TO THE CHARGING OF INTEREST U/S.234B & 234D OF THE ACT. 2. FACTS IN BRIEF BORNE OUT FROM THE RECORD ARE THAT THE ASSESSEE DERIVES INCOME FROM SALARY AND FILED RETURN OF INCOME SHOWING TOTAL INCOME OF RS. 4,13,000/ - . DURING THE ASSESSMENT PROCEEDINGS, THE AO NOTICED THAT THE ASSESSEE HAS CLAIMED DEDUCTION U/S.24 OF THE ACT ITA NO. 164 /14 2 AMOUNTING TO RS. 75,518/ - ON ACCOUNT O F INTEREST ON BORROWED CAPITAL. IT WAS ALSO FOUND FROM THE DOCUMENTS THAT WIFE OF THE ASSESSEE SMT. SIPRA DAS IS THE OWNER OF THE HOUSE PROPERTY, ACQUIRED ON GIFT FROM HER FATHER SHRI CHAKRADHAR MOHANTY AND FOR ITS RENOVATION LOAN WAS TAKEN BY THE ASSESSEE AND HIS WIFE FROM THE ICICI BANK. SINCE THE ASSESSEE WAS CO - APPLICANT IN THE ABOVE LOAN, THE ASSESSEE CLAIMED THE DEDUCTION O N INTEREST PAID ON LOAN U/S.24 OF THE ACT BUT THE SAME WAS DISALLOWED BY THE AO ON THE GROUND THAT THE ASSESSEE DID NOT OWN THE P ROPERTY. AN APPEAL WAS PREFERRED BEFORE THE CIT(A) BUT THE ASSESSEE DID NOT FIND FAVOUR WITH HIM. NOW, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US WITH THE SUBMISSION THAT HE HAS OBTAINED THE LOAN FOR RENOVATING THE RESIDENTIAL HOUSE WHICH WAS GIFTED BY HI S FATHER - IN - LAW TO HIS WIFE. SINCE THE LOAN IS OBTAINED JOINTLY BY THE ASSESSEE AND HIS WIFE FOR RENOVATION , ASSESSEE IS ENTITLED DEDUCTION O N INTEREST PAID ON THE LOAN U/S. 24 OF THE ACT. 3. LD. DR PLACED RELIANCE UPON THE ORDER S OF LOWER AUTHORITIES. 4 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES IN THE LIGHT OF RIVAL SUBMISSIONS, WE FIND THAT UNDISPUTEDLY THE IMPUGNED PROPERTY WAS RECEIVED BY THE WIFE OF THE ASSESSEE AS GIFT FROM HER FATHER AND THE LOAN WAS OBTAINED BY THE ASSESSEE AND HIS WIFE JOINTLY FROM THE ICICI BANK FOR RENOVATION OF THE HOUSE. SINCE THE HOUSE WAS USED FOR RESIDENTIAL PURPOSE BY THE ASSESSEE AS WELL AS BY HIS WIFE AND THE LOAN WAS UTILIZED FOR THE RENOVATION OF THE HOUSE, ASSESSEE IS ENTITLED FOR DEDUCTION ON THE I NTEREST PAID ON LOAN U/S.24 OF THE ACT. IT IS TOTALLY ITA NO. 164 /14 3 IRRELEVANT AS TO WHETHER THE HOUSE IS OWNED BY THE ASSESSEE OR NOT. SINCE THE ASSESSEE IS LIVING WITH HIS WIFE I N THE SAME PROPERTY, DEDUCTION OF INTEREST OF THE LOAN SHOULD BE ALLOWED TO HIM. ACCORDING LY, WE SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE AO TO ALLOW DEDUCTION O N INTEREST PAID ON LOAN OBTAINED FOR RENOVATION OF THE HOUSE. ACCORDINGLY, APPEAL OF THE ASSESSEE STANDS ALLOWED. 5 . SO FAR AS CHARGING OF INTEREST U/S.234B & 234D IS CONCERNED, THE SAME IS CONSEQUENTIAL IN NATURE AND NEEDS NO INDEPENDENT ADJUDICATION. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 / 05 / 201 5 . SD/ - SD/ - ( . . ) ( B. P. JAIN) ( ) (SUNIL KUMAR YADAV) / ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK ; DATED 29 /0 5 / 201 5 . . /PKM , . / PS / COPY OF THE ORDER F ORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, CUTTACK 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT , CUTTACK 6. [ / GUARD FILE. // TRUE COPY//