Smt. Shama Sachdeva, New Delhi V. DCIT, New Delhi

ITA 1698/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5774 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 25-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K TEWARI
• Assessee Lawyers: A TUL PURI CA MS POOJA KAKKAR
• Section: 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI G BENCH, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER, AND SHRI N.K. BILLAIYA ACCOUNTANT MEMBER ITA NO. 1 698 /DEL/201 5 [ASSESSMENT YEAR: 20 11 - 12 ] SMT. SHAMA KUMARI SACHDEVA VS. THE D . C.I.T C - 210, DEFENCE COLONY CIRCLE 7(1) NEW DELHI NEW DELHI PAN : AJQPS 4659 E [APPELLANT] [RESPONDENT] DATE OF HEARING : 26 . 0 6 .201 8 DATE OF PRONOUNCEMENT : 27 .0 6 .2018 ASSESSEE BY : SHRI A TUL PURI , CA MS. POOJA KAKKAR, CA REVENUE BY : S HRI K. TEWARI, SR. DR ORDER PER N.K. BILLAIYA , ACCOUNTANT MEMBER, THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 8 , NEW DELHI DATED 1 4 . 0 1.201 5 PERTAINING TO ASSESSMENT YEAR 20 11 - 12 . 2 2. THE SU M AND SUBSTANCE OF THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN CONFIRM ING THE DISALLOWANCE OF INTEREST CLAIMED AS DEDUCTION U/S 24 OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] . 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED HER RETURN OF INCOME ON 23.12.2009 DECLARING TOTAL INCOME OF RS. 30, 46,417/ - . THE RETURN WAS SELE C TED FOR SCRUTINY ASSESSMENT THROUGH CASS AND ACCORDINGLY , STATUTORY NOTICES WERE ISSUED AND SERVED UPON THE ASSESSEE. WHILE SCRUTINISING THE RETURN OF INCOME, THE AO NOTICED THAT THE MAIN SOURCE OF INCOME IS INCOME FROM HOUS E PROPERTY. THE AO FOUND THAT THE ASSESSEE HAS CLAIMED INTEREST OF RS. 20,82,640/ - AS DEDUCTION U/S 24 OF THE ACT. 4. THE AO WAS OF THE OPINION THAT SINCE THE ASSESSEE HAS NOT TAKEN LOAN FOR THE PROPERTY AGAINST WHICH THE INTEREST IS CLAIMED, SHE IS NOT ELIGIBLE FOR DEDUCTION U/S 24 OF THE ACT. ACCORDINGLY, RS. 20,82,640/ - WAS DISALLOWED. THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) BUT WITHOUT ANY SUCCESS. 3 5. BEFORE US, THE LD. AR VEHEMENTLY STATED THAT NO FRESH LOANS WERE TAKEN DURING THE YEAR U NDER CONSIDERATION. THE LOANS ON WHICH THE INTEREST PAYMENT HAS BEEN CLAIMED PERTAINS TO EARLIER YEARS AND IN EARLIER YEARS CLAIM OF DEDUCTION OF INTEREST HAS BEEN ALLOWED BY THE AO. THEREFORE, THE SAME SHOULD BE ALLOWED FOR THE YEAR UNDER CONSIDERATION ALSO. 6. PER CONTRA, THE LD. DR STRONGLY SUPPORTED THE FINDINGS OF THE AO. 7. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITIES BELOW. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. NO FRESH LOANS HAVE BEEN TAKEN DURING THE YEAR UNDER CON SIDERATION. WE FIND THAT A SIMILAR ISSUE AROSE IN A.Y 2007 - 08 AND WHEN THE MATTER WAS AGITATED BEFORE THE CIT(A), THE CIT(A) FOUND THAT THE INTEREST WAS PAID ON THE LOAN TAKEN FROM THE BANKS ONLY FOR COMMERCIAL PROPERTY. THEREFORE, PROVISO TO SECTION 24 OF THE ACT IS NOT APPLICABLE. DISALLOWANCE MADE BY THE AO WAS DELETED. 8. SIMILAR VIEW WAS TAKEN IN A.Y 2008 - 09. WE FIND THAT WHEN A SIMILAR PAYMENT OF INTEREST IN EARLIER YEARS HAS BEEN ALLOWED BY THE REVENUE, A DIFFERENT VIEW TAKEN DURING THE YEAR UNDER CONSIDERATION IS 4 NOT JUSTIFIED. WE, ACCORDINGLY, DIRECT THE AO TO DELETE THE IM PUGNED DISALLOWANCE. 8 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO. 1698 /DEL/201 5 IS ALLOWED . THE ORDER IS PRON OUNCED IN THE OPEN COURT ON 27 .0 6 .2018. S D / - S D / - [ H.S. SIDHU ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27 T H JUNE , 2018 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI 5 DATE OF DICTATION 26 .06.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 26 .06.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER .06.2018 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS .06.2018 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .06.2018 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS .06.2018 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER