Dr. Shuvo Dutta, Kolkata V. DCIT, CIR-55, KOLKATA, Kolkata

ITA 324/KOL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4489 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 31-03-2015
• Court: TRIBUNAL
• Department Lawyers: SNEHOTPAL DUTTA

Judgement Text

I.T.A. NO. 324/KOL./2015 ASSESSMENT YEAR: 2009-2010 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 324 /KOL/ 2015 ASSESSMENT YEAR: 2009-2010 DR. SHUVO DUTTA,................................... ...................................APPELLANT C/O. M. KUMAR & CO., 4, GANGADHAR BABU LANE, KOLKATA-700 012 [PAN: AEDPD 5117 N] -VS.- DEPUTY COMMISSIONER OF INCOME TAX,................. .................RESPONDENT CIRCLE-55, KOLKATA, 54/1, RAFI AHMED KIDWAI ROAD, KOLKATA APPEARANCES BY: SHRI ANIL KOCHAR, ADVOCATE, FOR THE ASSESSEE SHRI SNEHOTPAL DUTTA, JCIT, D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : JULY 19, 2016 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 21, 2016 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-6, KOLKATA DAT ED 04.01.2015 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DISALLOWANCE OF RS.2,36,906/- MADE BY THE ASSESSING OFFICER AND CON FIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF INTEREST. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO IS A MEDICAL PRACTITIONER. THE RETURN OF INCOME FOR THE YEAR UND ER CONSIDERATION WAS FILED BY HIM ON 12.09.2009 DECLARING TOTAL INCOME O F RS.33,14,470/-. IN THE SAID RETURN, DEDUCTION OF RS.2,36,906/- WAS CLA IMED BY THE ASSESSEE ON ACCOUNT OF INTEREST PAID ON LOAN AGAINST THE INC OME FROM PROPERTY SITUATED AT GOLF TOWERS AND/OR JODHPUR PARK. SINCE THE RELEVANT LOAN, ON WHICH SUCH INTEREST WAS PAID, HAD BEEN TAKEN BY THE ASSESSEE FOR THE PROPERTY SITUATED AT QUEENS PARK, THE DEDUCTION CL AIMED BY THE ASSESSEE I.T.A. NO. 324/KOL./2015 ASSESSMENT YEAR: 2009-2010 PAGE 2 OF 3 ON ACCOUNT OF INTEREST AGAINST INCOME FROM PROPERTY SITUATED AT GOLF TOWERS AND/OR JODHPUR PARK WAS DISALLOWED BY THE AS SESSING OFFICER. 3. THE DISALLOWANCE MADE BY THE ASSESSING OFFICER O N ACCOUNT OF INTEREST WAS CHALLENGED BY THE ASSESSEE IN THE APPE AL FILED BEFORE THE LD. CIT(APPEALS). DURING THE COURSE OF APPELLATE PROCEE DINGS BEFORE THE LD. CIT(APPEALS), AN ALTERNATIVE PLEA WAS RAISED BY THE ASSESSEE BY SUBMITTING THAT THE RELEVANT LOAN HAVING BEEN TAKEN AGAINST FIXED DEPOSIT KEPT WITH BANK, INTEREST PAID THEREON SHOULD BE ALL OWED AS DEDUCTION AGAINST THE INTEREST INCOME EARNED ON THE FIXED DEP OSIT. THIS ALTERNATIVE CLAIM OF THE ASSESSEE, HOWEVER, WAS NOT FOUND ACCEP TABLE BY THE LD. CIT(APPEALS) KEEPING IN VIEW SECTION 57(III) WHICH SPECIFICALLY PROVIDES THAT IN ORDER TO CLAIM DEDUCTION AGAINST THE INCOME CHARGEABLE TO TAX UNDER THE HEAD INCOME FROM OTHER SOURCES, EXPEND ITURE MUST BE LAID DOWN OR EXPENDED WHOLLY AND EXCLUSIVELY FOR THE PUR POSE OF MAKING OR EARNING OF INCOME. SINCE THE EXPENDITURE ON INTERES T IN QUESTION WAS INCURRED BY THE ASSESSEE FOR PURCHASE OF PROPERTY A ND NOT FOR EARNING OF INTEREST INCOME FROM FIXED DEPOSIT, THE DISALLOWANC E MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SUCH INTEREST WAS C ONFIRMED BY THE LD. CIT(APPEALS). AGGRIEVED BY THE ORDER OF THE LD. CIT (APPEALS), THE ASSESEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ALTHOUGH THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT DEDUCTION ON ACCOUNT OF INTEREST IN QUESTION IS TO BE ALLOWED AGAINST INTEREST INCOME EARNED BY THE ASSESSEE ON FDR KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT THE PROVISIONS OF SECTION 57(III) ARE VERY SPECIFIC IN THIS REGARD AND AS RIGHTLY HELD BY THE LD. CIT(APPEALS), THE DEDUCTION AGAINST THE INCOME CHARGEABLE TO TAX UNDER THE HEAD INCOME FROM OTHER SOURCES C AN BE ALLOWED ONLY IN RESPECT OF EXPENDITURE WHICH IS LAID DOWN OR EXPEND ED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF MAKING OR EARNING OF SUCH INCOME. IN THE PRESENT CASE, THE INTEREST EXPENDITURE WAS INCURRED BY THE ASSESSEE FOR I.T.A. NO. 324/KOL./2015 ASSESSMENT YEAR: 2009-2010 PAGE 3 OF 3 PURCHASE OF HOUSE PROPERTY AND NOT FOR EARNING OF I NTEREST ON FDS AND THE SAME, THEREFORE, CANNOT BE ALLOWED AS DEDUCTION UND ER SECTION 57(III). I, THEREFORE, FIND NO INFIRMITY IN THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) CONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING O FFICER ON ACCOUNT OF INTEREST AND UPHOLDING THE SAME, I DISMISS THIS APP EAL FILED BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON SEPTEMBER 21, 2016. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 21 ST DAY OF SEPTEMBER, 2016 COPIES TO : (1) DR. SHUVO DUTTA, C/O. M. KUMAR & CO., 4, GANGADHAR BABU LANE, KOLKATA-700 012 (2) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-55, KOLKATA, 54/1, RAFI AHMED KIDWAI ROAD, KOLKATA (3) COMMISSIONER OF INCOME TAX (APPEALS)-6, KOLKA TA; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.