SHRI RAM MOHAN PRATHIMA, CHENNAI V. ACIT, NCC-5, CHENNAI

ITA 2821/CHNY/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0121 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 04-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SEETHARAMAN F
• Keywords: Set aside
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C (SMC) BENCH: CHENNAI , BEFORE SHRI V. DURGA RAO , JUDICIAL MEMBER ./ ITA NO. 2821 /CHNY/ 20 19 / ASS ESSMENT YEAR: 20 1 3 - 201 4 SHRI RAMMOHAN PRATHIMA, OLD NO.64, NEW NO.26, ARATHOON ROAD, ROYAPURAM, CHENNAI 600 013. [PAN: A E W PP 2331P ] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON - CORPORATE CIRCLE 5, CHENNAI 600 006. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. SEETHARAMAN, F. C.A. /RESPONDENT BY : M R. SURESH PERIASAMY , J CIT / DATE OF HEARING : 09 .12 .2020 / DATE OF PRONOUNCEMENT : 18 . 12. 20 2 0 / O R D E R PER V. DURGA RAO , JUDICIAL MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 5 , CHENNAI IN I . T . A NO. 45 /CIT(A) - 5 /20 08 - 19 DATED 30.08.2019 RELEVANT TO THE ASSESSMENT Y EAR 20 1 3 - 20 1 4 . I . T . A NO . 2821/CHNY/2019 : - 2 - : 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO THE ADDITION OF RS. 5,07,585/ - . THE CASE OF THE ASSESSEE IS THAT HE HAS PURCHASED A FLAT AT MCNOCHOLS ROAD, EGMORE, CHENNAI BY BORROWING THE FUNDS FROM BANK OF BARODA AND INDIAN OVERSEA S BANK AND HAS PAID THE INTEREST. WHEN THE ASSESSEE HAS CLAIMED THE INTEREST AS DEDUCTION, THE ASSESSING OFFICER HAS DENIED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE HAS FAILED TO PRODUCE A CERTIFICATE THAT HE HAS BORROWED FUNDS FROM THE B ANK FOR THE PURPOSE OF PURCHASING THE FLAT. SUBSEQUENTLY, THE MATTER WAS PUT UP TO THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) AND THE HONBLE INCOME TAX APPELLATE TRIBUNAL AND ONCE AGAIN THE MATTER HAD COME BEFORE THE ASSESSING OFFICER. HONBLE INC OME TAX APPELLATE TRIBUNAL HAD SET ASIDE THE MATTER AND REMITTED THE SAME TO THE FILE OF THE ASSESSING OFFICER TO ADJUDICATE AFRESH. BUT AGAIN THE ASSESSING OFFICER HAS PASSED THE SAME ORDER AND DENIED THE CLAIM OF THE ASSESSEE. 3. WE HAVE HEARD BOTH T HE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 4. IN THE PAPER - BOOK AT PAGE NO.3 TO 7, IT SHOWS THAT THE ASSESSEE HAD BORROWED THE FUNDS AND PAID THE INTEREST THEREON. IT IS A FACT THAT THE ASSES SEE HAD PURCHASED A FLAT. THE ASSESSING OFFICER HAS NOT DOUBTED I . T . A NO . 2821/CHNY/2019 : - 3 - : TOWARDS THE PURCHASE OF THE FLAT BY THE ASSESSEE AND THE PAYMENT OF INTEREST TOO . ON THESE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT THE ASSESSING O FFICER HAS NOT JUSTIFIED IN DENYING THE DEDUCTION CLAIMED BY THE ASSESSEE. THEREFORE, WE SET ASIDE THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) AND WE ALLOW THE INTEREST DEDUCTION CLAIMED BY THE ASSESSEE . ACCORDINGLY, THE APPEAL FI LED BY THE ASSESSEE IS ALLOWED. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I.T.A NO. 2821 /CHNY/201 9 IS ALLOWED. ORDER PRONOUNCED ON 18 TH DECEMBER , 20 20 IN CHENNAI. SD/ - ( ) ( V. DURGA RAO ) /JUDICIAL MEMBER / CHENNAI, / DATED: 18 TH DECEMBER , 2020 IA, SR. PS / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF