Shri Binod Kumar Daga, Guwahati V. Assistant Commissioner of Income Tax, Circle-4, Guwahati

ITA 40/GTY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7589 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 05-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: H R SINGH
• Assessee Lawyers: B M SHETHIA
• Keywords: Additional evidence; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI ECOURT, ATKOLKATA BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.40/GAU/2018 ( / ASSESSMENT YEAR:2014-15) BINOD KUMAR DAGA, GUWAHATI C/O AKASH TRADING CO, DEWAN PATTY-FANCY BAZAR- GUWAHATI- 781001 VS. ACIT, CIRCLE-4, GUWAHATI ./ ./PAN/GIR NO.: AFCPD 1881 R (APPELLANT) .. (REVENUE) APPELLANT BY : SHRI B.M. SHETHIA, FCA RESPONDENT BY : SHRI H. R. SINGH, JCIT DR / DATE OF HEARING : 16/05/2019 /DATE OF PRONOUNCEMENT : 24/07/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE , PE RTAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-2, GUWAHATI, WHICH IN TURN ARISES OUT OF A N ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 26/09/2015. 2. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE A S FOLLOWS: 1. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, GUWAHATI IS ERRED IN LAW AS WELL AS IN FACTS IN OBS ERVING THAT APPELLANT HAS FAILED TO FILE ANY PETITION UNDER RULE 46A IN RESPE CT OF DOCUMENT NAMELY CERTIFICATE DATED 21.01.2017 OF THE FEDERAL BANK OF INDIA-FANCY BAZAR- GUWAHATI IN RESPECT OF LOAN TAKEN AND INTEREST PAID TO THE BANK FOR CONSTRUCTION OF WARE HOUSE UNDER THE NAME AND STYLE DAGA WARE HOUSING AT AMINGAON WHICH WAS CONSTRUCTED JOINTLY WITH APPE LLANTS WIFE AND THEREBY CONFIRMING THE DISALLOWANCE OF INTEREST CLA IM OF RS. 2,59,459/- U/S BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 24 OF I.T. ACT WHILE COMPUTING INCOME FROM HOUSE PR OPERTY MADE BY ASSESSING OFFICER, IGNORING SUCH LOAN UTILIZED FOR CONSTRUCTION OF WARE HOUSE FROM WHOM RENTAL INCOME RECEIVED DURING THE Y EAR AT RS. 37,88,580/- IN THE FACTS OF THE CASE WITHOUT CALLING ANY EXPLAN ATION FROM THE APPELLANT IN THE FACTS OF THE CASE. 2. FOR THE OTHER GROUNDS OF LAW AS WELL AS FACTS MA Y KINDLY BE PERMITTED AT THE TIME OF HEARING THE APPEAL. 3. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE LD. ASSESSING OFFICER MADE THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF THE ACT TO THE TUNE OF RS. 2,59,459/-. THE LD. ASSESSING OFFIC ER FINALLY MADE THE DISALLOWANCE, OBSERVING THAT THE ASSESSEE HAS NOT F ILED ANY DETAIL IN RECEIPT OF INTEREST CLAIM. THE COUNSEL SUBMITTED THAT THE ASSE SSEE HAS FILED THE NECESSARY EVIDENCE TO CLAIM THE INTEREST U/S 24 OF THE ACT DU RING THE ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16.06.2016 THEREFORE THE DISALLOW ANCE OF INTEREST SO MADE BY THE ASSESSING OFFICER IS BASED ON MERE SUSPICION AND SU RMISES. THE LD. DR FOR THE REVENUE FAIRLY AGREED THAT THE ASSESSEE SUBMITTED I NTEREST CERTIFICATE U/S 24 OF THE ACT BEFORE THE ASSESSING OFFICER, AND ALSO SUBMITTE D BANK STATEMENT AND THEREFORE, CLAIMED INTEREST U/S 24 OF THE ACT,HOWEVERTHE ASSES SING OFFICER HAS IGNORED THE SAME AND DID NOT TAKE INTO ACCOUNT THE INTEREST CER TIFICATE U/S 24 OF THE ACT. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEE HAS SUBMITTED THE CERTIFI CATE OF INTEREST CLAIMED U/S 24 OF THE ACT VIDE LETTER DATED 16.06.2016 (VIDE PB 29 TO 31),HOWEVER, THE ASSESSING OFFICER HAS IGNORED THE SAME. WE NOTE THAT DURING T HE APPELLATE PROCEEDINGS THE ASSESSEE HAS SUBMITTED THE BANK STATEMENT.WE NOTE T HAT THE ASSESSEE TOOK LOAN FROM FEDERAL BANKAND THE LOAN ACCOUNT HAS BEEN CLOS ED ON 03.09.2014. WE NOTE THAT THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASS ESSEE OBSERVING THE FOLLOWING: I HAVE GONE THROUGH THE ORDER OF THE LD. A.O. AND FIND THAT THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF I. T. ACT OF RS. 2,59,45 9/- WAS MADE BY THE LD. A.O. BY OBSERVING THAT NO DETAILS IN RESPECT OF INTEREST CL AIMED WERE FILED. HOWEVER, ON THE OTHER HAND, THE LD. AR OF THE APPELLANT HAS CON TENDED THAT EVIDENCES FOR CLAIM OF INTEREST U/S 24 WERE FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16/06/2016. THEREFORE, THE DISALLOWANC E OF INTEREST SO MADE BY A.O. IS BASED ON MERE SUSPICION AND SURMISES. BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 AFTER A PERUSAL OF THE DETAILS FURNISHED BEFORE THE UNDERSIGNED (AS PURPORTEDLY CLAIMED TO HAVE BEEN FURNISHED BEFORE THE LD. A.O. ALSO), IT IS NOWHERE CLEAR AS TO WHERE THE AGGREGATE AMOUNT OF INTEREST CLAIMED OF R S. 5,18,919/- IS REFLECTED. IN DEED, THE APPELLANT HAD FURNISHED BEFORE THE UNDERS IGNED, WITHOUT ANY PETITION UNDER RULE 46A OF THE INCOME TAX RULES, A CERTIFICA TE DATED 21/01/2017, FROM THE FEDERAL BANK THAT THE LOAN ACCOUNT HAS BEEN CLOSED. CLEARLY THE IMPUGNED ORDER WAS PASSED IN THIS CASE ON 26.09.2016 AND HENCE THE SAID CERTIFICATE DATED 21/01/2017 COULD NOT HAVE BEEN FILED BEFORE THE LD. A.O. ON OR BEFORE 26.09.2016. I FAIL TO APPRECIATE THAT ON ONE HAND THE APPELLANT HAS CONTENDED THAT HE HAD FURNISHED THE DETAILS BEFORE THE A.O. AND ON THE OT HER HAND, THE APPELLANT HAS PLACIDLY FURNISHED ADDITIONAL EVIDENCES WITHOUT ANY PETITION UNDER RULE 46A OF THE ACT. EVEN MORE, IN THE SAID CERTIFICATE, THE AMOUNT OF INTEREST PAID JOINTLY BY THE CO-OWNERS IS NOWHERE STATED, LEAVE APART THE INDIVI DUAL SHARE OF EACH CO-OWNER WHICH WOULD HAVE BEEN DETERMINED BASED ON THE RATIO OF PAYMENTS MADE TOWARDS THE LOAN ACCOUNT BY EACH CO-OWNER. IN THE ABSENCE O F ANY SPECIFIC DETAILS AND CERTIFICATE AS REQUIRED U/S 24 OF THE ACT, THE DIS ALLOWANCE OF INTEREST OF RS. 2,59,459/- U/S 24 MADE BY THE A.O. IS HEREBY IS CON FIRMED. 5. WE HAVE GONE THROUGH THE OBSERVATION OF THE LD. CIT(A) AND SEEMS TO US THAT THE ASSESSEE HAD FILED THE NECESSARY CERTIFICATE TO CLAIM THE INTEREST U/S 24 OF THE ACT,HOWEVER NEITHER THE ASSESSING OFFICER NOR THE L D. CIT(A) HAS EXAMINED IT THEREFORE, WE ARE OF THE VIEW THAT THIS ISSUE SHOUL D BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE INTEREST CERTI FICATE U/S 24 OF THE ACT. THEREFORE WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER.THE LD. AO IS DIRECTE D TO EXAMINE THE CERTIFICATE U/S 24 OF THE ACT AND ALLOW THE CLAIM OF THE ASSESSEE I N ACCORDANCE WITH LAW. 6. IN THE RESULT, STATISTICAL PURPOSES THE APPEAL O F THE ASSESSEE IS TREATED TO BE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 24.07.2019 SD/- ( A.T. VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 24/07/2019 ( SB, SR.PS ) BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 COPY OF THE ORDER FORWARDED TO: 1. BINOD KUMAR DAGA, GUWAHATI 2. ACIT, CIRCLE-4, GUWAHATI 3. C.I.T(A)- 4. C.I.T.- GUWAHATI 5. CIT(DR), GAUHATI BENCH, GUWAHATI. 6. GUARD FILE. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY / DDO / H.O.O ITAT, GAUHA TI BENCH IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI ECOURT, ATKOLKATA BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.40/GAU/2018 ( / ASSESSMENT YEAR:2014-15) BINOD KUMAR DAGA, GUWAHATI C/O AKASH TRADING CO, DEWAN PATTY-FANCY BAZAR- GUWAHATI- 781001 VS. ACIT, CIRCLE-4, GUWAHATI ./ ./PAN/GIR NO.: AFCPD 1881 R (APPELLANT) .. (REVENUE) APPELLANT BY : SHRI B.M. SHETHIA, FCA RESPONDENT BY : SHRI H. R. SINGH, JCIT DR / DATE OF HEARING : 16/05/2019 /DATE OF PRONOUNCEMENT : 24/07/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE , PE RTAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-2, GUWAHATI, WHICH IN TURN ARISES OUT OF A N ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 26/09/2015. 2. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE A S FOLLOWS: 1. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, GUWAHATI IS ERRED IN LAW AS WELL AS IN FACTS IN OBS ERVING THAT APPELLANT HAS FAILED TO FILE ANY PETITION UNDER RULE 46A IN RESPE CT OF DOCUMENT NAMELY CERTIFICATE DATED 21.01.2017 OF THE FEDERAL BANK OF INDIA-FANCY BAZAR- GUWAHATI IN RESPECT OF LOAN TAKEN AND INTEREST PAID TO THE BANK FOR CONSTRUCTION OF WARE HOUSE UNDER THE NAME AND STYLE DAGA WARE HOUSING AT AMINGAON WHICH WAS CONSTRUCTED JOINTLY WITH APPE LLANTS WIFE AND THEREBY CONFIRMING THE DISALLOWANCE OF INTEREST CLA IM OF RS. 2,59,459/- U/S BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 24 OF I.T. ACT WHILE COMPUTING INCOME FROM HOUSE PR OPERTY MADE BY ASSESSING OFFICER, IGNORING SUCH LOAN UTILIZED FOR CONSTRUCTION OF WARE HOUSE FROM WHOM RENTAL INCOME RECEIVED DURING THE Y EAR AT RS. 37,88,580/- IN THE FACTS OF THE CASE WITHOUT CALLING ANY EXPLAN ATION FROM THE APPELLANT IN THE FACTS OF THE CASE. 2. FOR THE OTHER GROUNDS OF LAW AS WELL AS FACTS MA Y KINDLY BE PERMITTED AT THE TIME OF HEARING THE APPEAL. 3. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE LD. ASSESSING OFFICER MADE THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF THE ACT TO THE TUNE OF RS. 2,59,459/-. THE LD. ASSESSING OFFIC ER FINALLY MADE THE DISALLOWANCE, OBSERVING THAT THE ASSESSEE HAS NOT F ILED ANY DETAIL IN RECEIPT OF INTEREST CLAIM. THE COUNSEL SUBMITTED THAT THE ASSE SSEE HAS FILED THE NECESSARY EVIDENCE TO CLAIM THE INTEREST U/S 24 OF THE ACT DU RING THE ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16.06.2016 THEREFORE THE DISALLOW ANCE OF INTEREST SO MADE BY THE ASSESSING OFFICER IS BASED ON MERE SUSPICION AND SU RMISES. THE LD. DR FOR THE REVENUE FAIRLY AGREED THAT THE ASSESSEE SUBMITTED I NTEREST CERTIFICATE U/S 24 OF THE ACT BEFORE THE ASSESSING OFFICER, AND ALSO SUBMITTE D BANK STATEMENT AND THEREFORE, CLAIMED INTEREST U/S 24 OF THE ACT,HOWEVERTHE ASSES SING OFFICER HAS IGNORED THE SAME AND DID NOT TAKE INTO ACCOUNT THE INTEREST CER TIFICATE U/S 24 OF THE ACT. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEE HAS SUBMITTED THE CERTIFI CATE OF INTEREST CLAIMED U/S 24 OF THE ACT VIDE LETTER DATED 16.06.2016 (VIDE PB 29 TO 31),HOWEVER, THE ASSESSING OFFICER HAS IGNORED THE SAME. WE NOTE THAT DURING T HE APPELLATE PROCEEDINGS THE ASSESSEE HAS SUBMITTED THE BANK STATEMENT.WE NOTE T HAT THE ASSESSEE TOOK LOAN FROM FEDERAL BANKAND THE LOAN ACCOUNT HAS BEEN CLOS ED ON 03.09.2014. WE NOTE THAT THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASS ESSEE OBSERVING THE FOLLOWING: I HAVE GONE THROUGH THE ORDER OF THE LD. A.O. AND FIND THAT THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF I. T. ACT OF RS. 2,59,45 9/- WAS MADE BY THE LD. A.O. BY OBSERVING THAT NO DETAILS IN RESPECT OF INTEREST CL AIMED WERE FILED. HOWEVER, ON THE OTHER HAND, THE LD. AR OF THE APPELLANT HAS CON TENDED THAT EVIDENCES FOR CLAIM OF INTEREST U/S 24 WERE FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16/06/2016. THEREFORE, THE DISALLOWANC E OF INTEREST SO MADE BY A.O. IS BASED ON MERE SUSPICION AND SURMISES. BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 AFTER A PERUSAL OF THE DETAILS FURNISHED BEFORE THE UNDERSIGNED (AS PURPORTEDLY CLAIMED TO HAVE BEEN FURNISHED BEFORE THE LD. A.O. ALSO), IT IS NOWHERE CLEAR AS TO WHERE THE AGGREGATE AMOUNT OF INTEREST CLAIMED OF R S. 5,18,919/- IS REFLECTED. IN DEED, THE APPELLANT HAD FURNISHED BEFORE THE UNDERS IGNED, WITHOUT ANY PETITION UNDER RULE 46A OF THE INCOME TAX RULES, A CERTIFICA TE DATED 21/01/2017, FROM THE FEDERAL BANK THAT THE LOAN ACCOUNT HAS BEEN CLOSED. CLEARLY THE IMPUGNED ORDER WAS PASSED IN THIS CASE ON 26.09.2016 AND HENCE THE SAID CERTIFICATE DATED 21/01/2017 COULD NOT HAVE BEEN FILED BEFORE THE LD. A.O. ON OR BEFORE 26.09.2016. I FAIL TO APPRECIATE THAT ON ONE HAND THE APPELLANT HAS CONTENDED THAT HE HAD FURNISHED THE DETAILS BEFORE THE A.O. AND ON THE OT HER HAND, THE APPELLANT HAS PLACIDLY FURNISHED ADDITIONAL EVIDENCES WITHOUT ANY PETITION UNDER RULE 46A OF THE ACT. EVEN MORE, IN THE SAID CERTIFICATE, THE AMOUNT OF INTEREST PAID JOINTLY BY THE CO-OWNERS IS NOWHERE STATED, LEAVE APART THE INDIVI DUAL SHARE OF EACH CO-OWNER WHICH WOULD HAVE BEEN DETERMINED BASED ON THE RATIO OF PAYMENTS MADE TOWARDS THE LOAN ACCOUNT BY EACH CO-OWNER. IN THE ABSENCE O F ANY SPECIFIC DETAILS AND CERTIFICATE AS REQUIRED U/S 24 OF THE ACT, THE DIS ALLOWANCE OF INTEREST OF RS. 2,59,459/- U/S 24 MADE BY THE A.O. IS HEREBY IS CON FIRMED. 5. WE HAVE GONE THROUGH THE OBSERVATION OF THE LD. CIT(A) AND SEEMS TO US THAT THE ASSESSEE HAD FILED THE NECESSARY CERTIFICATE TO CLAIM THE INTEREST U/S 24 OF THE ACT,HOWEVER NEITHER THE ASSESSING OFFICER NOR THE L D. CIT(A) HAS EXAMINED IT THEREFORE, WE ARE OF THE VIEW THAT THIS ISSUE SHOUL D BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE INTEREST CERTI FICATE U/S 24 OF THE ACT. THEREFORE WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER.THE LD. AO IS DIRECTE D TO EXAMINE THE CERTIFICATE U/S 24 OF THE ACT AND ALLOW THE CLAIM OF THE ASSESSEE I N ACCORDANCE WITH LAW. 6. IN THE RESULT, STATISTICAL PURPOSES THE APPEAL O F THE ASSESSEE IS TREATED TO BE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 24.07.2019 SD/- ( A.T. VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 24/07/2019 ( SB, SR.PS ) BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 COPY OF THE ORDER FORWARDED TO: 1. BINOD KUMAR DAGA, GUWAHATI 2. ACIT, CIRCLE-4, GUWAHATI 3. C.I.T(A)- 4. C.I.T.- GUWAHATI 5. CIT(DR), GAUHATI BENCH, GUWAHATI. 6. GUARD FILE. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY / DDO / H.O.O ITAT, GAUHA TI BENCH IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI ECOURT, ATKOLKATA BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.40/GAU/2018 ( / ASSESSMENT YEAR:2014-15) BINOD KUMAR DAGA, GUWAHATI C/O AKASH TRADING CO, DEWAN PATTY-FANCY BAZAR- GUWAHATI- 781001 VS. ACIT, CIRCLE-4, GUWAHATI ./ ./PAN/GIR NO.: AFCPD 1881 R (APPELLANT) .. (REVENUE) APPELLANT BY : SHRI B.M. SHETHIA, FCA RESPONDENT BY : SHRI H. R. SINGH, JCIT DR / DATE OF HEARING : 16/05/2019 /DATE OF PRONOUNCEMENT : 24/07/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE , PE RTAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-2, GUWAHATI, WHICH IN TURN ARISES OUT OF A N ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 26/09/2015. 2. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE A S FOLLOWS: 1. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, GUWAHATI IS ERRED IN LAW AS WELL AS IN FACTS IN OBS ERVING THAT APPELLANT HAS FAILED TO FILE ANY PETITION UNDER RULE 46A IN RESPE CT OF DOCUMENT NAMELY CERTIFICATE DATED 21.01.2017 OF THE FEDERAL BANK OF INDIA-FANCY BAZAR- GUWAHATI IN RESPECT OF LOAN TAKEN AND INTEREST PAID TO THE BANK FOR CONSTRUCTION OF WARE HOUSE UNDER THE NAME AND STYLE DAGA WARE HOUSING AT AMINGAON WHICH WAS CONSTRUCTED JOINTLY WITH APPE LLANTS WIFE AND THEREBY CONFIRMING THE DISALLOWANCE OF INTEREST CLA IM OF RS. 2,59,459/- U/S BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 24 OF I.T. ACT WHILE COMPUTING INCOME FROM HOUSE PR OPERTY MADE BY ASSESSING OFFICER, IGNORING SUCH LOAN UTILIZED FOR CONSTRUCTION OF WARE HOUSE FROM WHOM RENTAL INCOME RECEIVED DURING THE Y EAR AT RS. 37,88,580/- IN THE FACTS OF THE CASE WITHOUT CALLING ANY EXPLAN ATION FROM THE APPELLANT IN THE FACTS OF THE CASE. 2. FOR THE OTHER GROUNDS OF LAW AS WELL AS FACTS MA Y KINDLY BE PERMITTED AT THE TIME OF HEARING THE APPEAL. 3. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE LD. ASSESSING OFFICER MADE THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF THE ACT TO THE TUNE OF RS. 2,59,459/-. THE LD. ASSESSING OFFIC ER FINALLY MADE THE DISALLOWANCE, OBSERVING THAT THE ASSESSEE HAS NOT F ILED ANY DETAIL IN RECEIPT OF INTEREST CLAIM. THE COUNSEL SUBMITTED THAT THE ASSE SSEE HAS FILED THE NECESSARY EVIDENCE TO CLAIM THE INTEREST U/S 24 OF THE ACT DU RING THE ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16.06.2016 THEREFORE THE DISALLOW ANCE OF INTEREST SO MADE BY THE ASSESSING OFFICER IS BASED ON MERE SUSPICION AND SU RMISES. THE LD. DR FOR THE REVENUE FAIRLY AGREED THAT THE ASSESSEE SUBMITTED I NTEREST CERTIFICATE U/S 24 OF THE ACT BEFORE THE ASSESSING OFFICER, AND ALSO SUBMITTE D BANK STATEMENT AND THEREFORE, CLAIMED INTEREST U/S 24 OF THE ACT,HOWEVERTHE ASSES SING OFFICER HAS IGNORED THE SAME AND DID NOT TAKE INTO ACCOUNT THE INTEREST CER TIFICATE U/S 24 OF THE ACT. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEE HAS SUBMITTED THE CERTIFI CATE OF INTEREST CLAIMED U/S 24 OF THE ACT VIDE LETTER DATED 16.06.2016 (VIDE PB 29 TO 31),HOWEVER, THE ASSESSING OFFICER HAS IGNORED THE SAME. WE NOTE THAT DURING T HE APPELLATE PROCEEDINGS THE ASSESSEE HAS SUBMITTED THE BANK STATEMENT.WE NOTE T HAT THE ASSESSEE TOOK LOAN FROM FEDERAL BANKAND THE LOAN ACCOUNT HAS BEEN CLOS ED ON 03.09.2014. WE NOTE THAT THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASS ESSEE OBSERVING THE FOLLOWING: I HAVE GONE THROUGH THE ORDER OF THE LD. A.O. AND FIND THAT THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF I. T. ACT OF RS. 2,59,45 9/- WAS MADE BY THE LD. A.O. BY OBSERVING THAT NO DETAILS IN RESPECT OF INTEREST CL AIMED WERE FILED. HOWEVER, ON THE OTHER HAND, THE LD. AR OF THE APPELLANT HAS CON TENDED THAT EVIDENCES FOR CLAIM OF INTEREST U/S 24 WERE FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16/06/2016. THEREFORE, THE DISALLOWANC E OF INTEREST SO MADE BY A.O. IS BASED ON MERE SUSPICION AND SURMISES. BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 AFTER A PERUSAL OF THE DETAILS FURNISHED BEFORE THE UNDERSIGNED (AS PURPORTEDLY CLAIMED TO HAVE BEEN FURNISHED BEFORE THE LD. A.O. ALSO), IT IS NOWHERE CLEAR AS TO WHERE THE AGGREGATE AMOUNT OF INTEREST CLAIMED OF R S. 5,18,919/- IS REFLECTED. IN DEED, THE APPELLANT HAD FURNISHED BEFORE THE UNDERS IGNED, WITHOUT ANY PETITION UNDER RULE 46A OF THE INCOME TAX RULES, A CERTIFICA TE DATED 21/01/2017, FROM THE FEDERAL BANK THAT THE LOAN ACCOUNT HAS BEEN CLOSED. CLEARLY THE IMPUGNED ORDER WAS PASSED IN THIS CASE ON 26.09.2016 AND HENCE THE SAID CERTIFICATE DATED 21/01/2017 COULD NOT HAVE BEEN FILED BEFORE THE LD. A.O. ON OR BEFORE 26.09.2016. I FAIL TO APPRECIATE THAT ON ONE HAND THE APPELLANT HAS CONTENDED THAT HE HAD FURNISHED THE DETAILS BEFORE THE A.O. AND ON THE OT HER HAND, THE APPELLANT HAS PLACIDLY FURNISHED ADDITIONAL EVIDENCES WITHOUT ANY PETITION UNDER RULE 46A OF THE ACT. EVEN MORE, IN THE SAID CERTIFICATE, THE AMOUNT OF INTEREST PAID JOINTLY BY THE CO-OWNERS IS NOWHERE STATED, LEAVE APART THE INDIVI DUAL SHARE OF EACH CO-OWNER WHICH WOULD HAVE BEEN DETERMINED BASED ON THE RATIO OF PAYMENTS MADE TOWARDS THE LOAN ACCOUNT BY EACH CO-OWNER. IN THE ABSENCE O F ANY SPECIFIC DETAILS AND CERTIFICATE AS REQUIRED U/S 24 OF THE ACT, THE DIS ALLOWANCE OF INTEREST OF RS. 2,59,459/- U/S 24 MADE BY THE A.O. IS HEREBY IS CON FIRMED. 5. WE HAVE GONE THROUGH THE OBSERVATION OF THE LD. CIT(A) AND SEEMS TO US THAT THE ASSESSEE HAD FILED THE NECESSARY CERTIFICATE TO CLAIM THE INTEREST U/S 24 OF THE ACT,HOWEVER NEITHER THE ASSESSING OFFICER NOR THE L D. CIT(A) HAS EXAMINED IT THEREFORE, WE ARE OF THE VIEW THAT THIS ISSUE SHOUL D BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE INTEREST CERTI FICATE U/S 24 OF THE ACT. THEREFORE WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER.THE LD. AO IS DIRECTE D TO EXAMINE THE CERTIFICATE U/S 24 OF THE ACT AND ALLOW THE CLAIM OF THE ASSESSEE I N ACCORDANCE WITH LAW. 6. IN THE RESULT, STATISTICAL PURPOSES THE APPEAL O F THE ASSESSEE IS TREATED TO BE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 24.07.2019 SD/- ( A.T. VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 24/07/2019 ( SB, SR.PS ) BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 COPY OF THE ORDER FORWARDED TO: 1. BINOD KUMAR DAGA, GUWAHATI 2. ACIT, CIRCLE-4, GUWAHATI 3. C.I.T(A)- 4. C.I.T.- GUWAHATI 5. CIT(DR), GAUHATI BENCH, GUWAHATI. 6. GUARD FILE. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY / DDO / H.O.O ITAT, GAUHA TI BENCH IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI ECOURT, ATKOLKATA BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.40/GAU/2018 ( / ASSESSMENT YEAR:2014-15) BINOD KUMAR DAGA, GUWAHATI C/O AKASH TRADING CO, DEWAN PATTY-FANCY BAZAR- GUWAHATI- 781001 VS. ACIT, CIRCLE-4, GUWAHATI ./ ./PAN/GIR NO.: AFCPD 1881 R (APPELLANT) .. (REVENUE) APPELLANT BY : SHRI B.M. SHETHIA, FCA RESPONDENT BY : SHRI H. R. SINGH, JCIT DR / DATE OF HEARING : 16/05/2019 /DATE OF PRONOUNCEMENT : 24/07/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE , PE RTAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-2, GUWAHATI, WHICH IN TURN ARISES OUT OF A N ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 26/09/2015. 2. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE A S FOLLOWS: 1. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, GUWAHATI IS ERRED IN LAW AS WELL AS IN FACTS IN OBS ERVING THAT APPELLANT HAS FAILED TO FILE ANY PETITION UNDER RULE 46A IN RESPE CT OF DOCUMENT NAMELY CERTIFICATE DATED 21.01.2017 OF THE FEDERAL BANK OF INDIA-FANCY BAZAR- GUWAHATI IN RESPECT OF LOAN TAKEN AND INTEREST PAID TO THE BANK FOR CONSTRUCTION OF WARE HOUSE UNDER THE NAME AND STYLE DAGA WARE HOUSING AT AMINGAON WHICH WAS CONSTRUCTED JOINTLY WITH APPE LLANTS WIFE AND THEREBY CONFIRMING THE DISALLOWANCE OF INTEREST CLA IM OF RS. 2,59,459/- U/S BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 24 OF I.T. ACT WHILE COMPUTING INCOME FROM HOUSE PR OPERTY MADE BY ASSESSING OFFICER, IGNORING SUCH LOAN UTILIZED FOR CONSTRUCTION OF WARE HOUSE FROM WHOM RENTAL INCOME RECEIVED DURING THE Y EAR AT RS. 37,88,580/- IN THE FACTS OF THE CASE WITHOUT CALLING ANY EXPLAN ATION FROM THE APPELLANT IN THE FACTS OF THE CASE. 2. FOR THE OTHER GROUNDS OF LAW AS WELL AS FACTS MA Y KINDLY BE PERMITTED AT THE TIME OF HEARING THE APPEAL. 3. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE LD. ASSESSING OFFICER MADE THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF THE ACT TO THE TUNE OF RS. 2,59,459/-. THE LD. ASSESSING OFFIC ER FINALLY MADE THE DISALLOWANCE, OBSERVING THAT THE ASSESSEE HAS NOT F ILED ANY DETAIL IN RECEIPT OF INTEREST CLAIM. THE COUNSEL SUBMITTED THAT THE ASSE SSEE HAS FILED THE NECESSARY EVIDENCE TO CLAIM THE INTEREST U/S 24 OF THE ACT DU RING THE ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16.06.2016 THEREFORE THE DISALLOW ANCE OF INTEREST SO MADE BY THE ASSESSING OFFICER IS BASED ON MERE SUSPICION AND SU RMISES. THE LD. DR FOR THE REVENUE FAIRLY AGREED THAT THE ASSESSEE SUBMITTED I NTEREST CERTIFICATE U/S 24 OF THE ACT BEFORE THE ASSESSING OFFICER, AND ALSO SUBMITTE D BANK STATEMENT AND THEREFORE, CLAIMED INTEREST U/S 24 OF THE ACT,HOWEVERTHE ASSES SING OFFICER HAS IGNORED THE SAME AND DID NOT TAKE INTO ACCOUNT THE INTEREST CER TIFICATE U/S 24 OF THE ACT. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEE HAS SUBMITTED THE CERTIFI CATE OF INTEREST CLAIMED U/S 24 OF THE ACT VIDE LETTER DATED 16.06.2016 (VIDE PB 29 TO 31),HOWEVER, THE ASSESSING OFFICER HAS IGNORED THE SAME. WE NOTE THAT DURING T HE APPELLATE PROCEEDINGS THE ASSESSEE HAS SUBMITTED THE BANK STATEMENT.WE NOTE T HAT THE ASSESSEE TOOK LOAN FROM FEDERAL BANKAND THE LOAN ACCOUNT HAS BEEN CLOS ED ON 03.09.2014. WE NOTE THAT THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASS ESSEE OBSERVING THE FOLLOWING: I HAVE GONE THROUGH THE ORDER OF THE LD. A.O. AND FIND THAT THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF I. T. ACT OF RS. 2,59,45 9/- WAS MADE BY THE LD. A.O. BY OBSERVING THAT NO DETAILS IN RESPECT OF INTEREST CL AIMED WERE FILED. HOWEVER, ON THE OTHER HAND, THE LD. AR OF THE APPELLANT HAS CON TENDED THAT EVIDENCES FOR CLAIM OF INTEREST U/S 24 WERE FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16/06/2016. THEREFORE, THE DISALLOWANC E OF INTEREST SO MADE BY A.O. IS BASED ON MERE SUSPICION AND SURMISES. BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 AFTER A PERUSAL OF THE DETAILS FURNISHED BEFORE THE UNDERSIGNED (AS PURPORTEDLY CLAIMED TO HAVE BEEN FURNISHED BEFORE THE LD. A.O. ALSO), IT IS NOWHERE CLEAR AS TO WHERE THE AGGREGATE AMOUNT OF INTEREST CLAIMED OF R S. 5,18,919/- IS REFLECTED. IN DEED, THE APPELLANT HAD FURNISHED BEFORE THE UNDERS IGNED, WITHOUT ANY PETITION UNDER RULE 46A OF THE INCOME TAX RULES, A CERTIFICA TE DATED 21/01/2017, FROM THE FEDERAL BANK THAT THE LOAN ACCOUNT HAS BEEN CLOSED. CLEARLY THE IMPUGNED ORDER WAS PASSED IN THIS CASE ON 26.09.2016 AND HENCE THE SAID CERTIFICATE DATED 21/01/2017 COULD NOT HAVE BEEN FILED BEFORE THE LD. A.O. ON OR BEFORE 26.09.2016. I FAIL TO APPRECIATE THAT ON ONE HAND THE APPELLANT HAS CONTENDED THAT HE HAD FURNISHED THE DETAILS BEFORE THE A.O. AND ON THE OT HER HAND, THE APPELLANT HAS PLACIDLY FURNISHED ADDITIONAL EVIDENCES WITHOUT ANY PETITION UNDER RULE 46A OF THE ACT. EVEN MORE, IN THE SAID CERTIFICATE, THE AMOUNT OF INTEREST PAID JOINTLY BY THE CO-OWNERS IS NOWHERE STATED, LEAVE APART THE INDIVI DUAL SHARE OF EACH CO-OWNER WHICH WOULD HAVE BEEN DETERMINED BASED ON THE RATIO OF PAYMENTS MADE TOWARDS THE LOAN ACCOUNT BY EACH CO-OWNER. IN THE ABSENCE O F ANY SPECIFIC DETAILS AND CERTIFICATE AS REQUIRED U/S 24 OF THE ACT, THE DIS ALLOWANCE OF INTEREST OF RS. 2,59,459/- U/S 24 MADE BY THE A.O. IS HEREBY IS CON FIRMED. 5. WE HAVE GONE THROUGH THE OBSERVATION OF THE LD. CIT(A) AND SEEMS TO US THAT THE ASSESSEE HAD FILED THE NECESSARY CERTIFICATE TO CLAIM THE INTEREST U/S 24 OF THE ACT,HOWEVER NEITHER THE ASSESSING OFFICER NOR THE L D. CIT(A) HAS EXAMINED IT THEREFORE, WE ARE OF THE VIEW THAT THIS ISSUE SHOUL D BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE INTEREST CERTI FICATE U/S 24 OF THE ACT. THEREFORE WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER.THE LD. AO IS DIRECTE D TO EXAMINE THE CERTIFICATE U/S 24 OF THE ACT AND ALLOW THE CLAIM OF THE ASSESSEE I N ACCORDANCE WITH LAW. 6. IN THE RESULT, STATISTICAL PURPOSES THE APPEAL O F THE ASSESSEE IS TREATED TO BE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 24.07.2019 SD/- ( A.T. VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 24/07/2019 ( SB, SR.PS ) BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 COPY OF THE ORDER FORWARDED TO: 1. BINOD KUMAR DAGA, GUWAHATI 2. ACIT, CIRCLE-4, GUWAHATI 3. C.I.T(A)- 4. C.I.T.- GUWAHATI 5. CIT(DR), GAUHATI BENCH, GUWAHATI. 6. GUARD FILE. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY / DDO / H.O.O ITAT, GAUHA TI BENCH IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI ECOURT, ATKOLKATA BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.40/GAU/2018 ( / ASSESSMENT YEAR:2014-15) BINOD KUMAR DAGA, GUWAHATI C/O AKASH TRADING CO, DEWAN PATTY-FANCY BAZAR- GUWAHATI- 781001 VS. ACIT, CIRCLE-4, GUWAHATI ./ ./PAN/GIR NO.: AFCPD 1881 R (APPELLANT) .. (REVENUE) APPELLANT BY : SHRI B.M. SHETHIA, FCA RESPONDENT BY : SHRI H. R. SINGH, JCIT DR / DATE OF HEARING : 16/05/2019 /DATE OF PRONOUNCEMENT : 24/07/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE , PE RTAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-2, GUWAHATI, WHICH IN TURN ARISES OUT OF A N ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 26/09/2015. 2. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE A S FOLLOWS: 1. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, GUWAHATI IS ERRED IN LAW AS WELL AS IN FACTS IN OBS ERVING THAT APPELLANT HAS FAILED TO FILE ANY PETITION UNDER RULE 46A IN RESPE CT OF DOCUMENT NAMELY CERTIFICATE DATED 21.01.2017 OF THE FEDERAL BANK OF INDIA-FANCY BAZAR- GUWAHATI IN RESPECT OF LOAN TAKEN AND INTEREST PAID TO THE BANK FOR CONSTRUCTION OF WARE HOUSE UNDER THE NAME AND STYLE DAGA WARE HOUSING AT AMINGAON WHICH WAS CONSTRUCTED JOINTLY WITH APPE LLANTS WIFE AND THEREBY CONFIRMING THE DISALLOWANCE OF INTEREST CLA IM OF RS. 2,59,459/- U/S BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 24 OF I.T. ACT WHILE COMPUTING INCOME FROM HOUSE PR OPERTY MADE BY ASSESSING OFFICER, IGNORING SUCH LOAN UTILIZED FOR CONSTRUCTION OF WARE HOUSE FROM WHOM RENTAL INCOME RECEIVED DURING THE Y EAR AT RS. 37,88,580/- IN THE FACTS OF THE CASE WITHOUT CALLING ANY EXPLAN ATION FROM THE APPELLANT IN THE FACTS OF THE CASE. 2. FOR THE OTHER GROUNDS OF LAW AS WELL AS FACTS MA Y KINDLY BE PERMITTED AT THE TIME OF HEARING THE APPEAL. 3. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE LD. ASSESSING OFFICER MADE THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF THE ACT TO THE TUNE OF RS. 2,59,459/-. THE LD. ASSESSING OFFIC ER FINALLY MADE THE DISALLOWANCE, OBSERVING THAT THE ASSESSEE HAS NOT F ILED ANY DETAIL IN RECEIPT OF INTEREST CLAIM. THE COUNSEL SUBMITTED THAT THE ASSE SSEE HAS FILED THE NECESSARY EVIDENCE TO CLAIM THE INTEREST U/S 24 OF THE ACT DU RING THE ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16.06.2016 THEREFORE THE DISALLOW ANCE OF INTEREST SO MADE BY THE ASSESSING OFFICER IS BASED ON MERE SUSPICION AND SU RMISES. THE LD. DR FOR THE REVENUE FAIRLY AGREED THAT THE ASSESSEE SUBMITTED I NTEREST CERTIFICATE U/S 24 OF THE ACT BEFORE THE ASSESSING OFFICER, AND ALSO SUBMITTE D BANK STATEMENT AND THEREFORE, CLAIMED INTEREST U/S 24 OF THE ACT,HOWEVERTHE ASSES SING OFFICER HAS IGNORED THE SAME AND DID NOT TAKE INTO ACCOUNT THE INTEREST CER TIFICATE U/S 24 OF THE ACT. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEE HAS SUBMITTED THE CERTIFI CATE OF INTEREST CLAIMED U/S 24 OF THE ACT VIDE LETTER DATED 16.06.2016 (VIDE PB 29 TO 31),HOWEVER, THE ASSESSING OFFICER HAS IGNORED THE SAME. WE NOTE THAT DURING T HE APPELLATE PROCEEDINGS THE ASSESSEE HAS SUBMITTED THE BANK STATEMENT.WE NOTE T HAT THE ASSESSEE TOOK LOAN FROM FEDERAL BANKAND THE LOAN ACCOUNT HAS BEEN CLOS ED ON 03.09.2014. WE NOTE THAT THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASS ESSEE OBSERVING THE FOLLOWING: I HAVE GONE THROUGH THE ORDER OF THE LD. A.O. AND FIND THAT THE DISALLOWANCE OF INTEREST CLAIMED U/S 24 OF I. T. ACT OF RS. 2,59,45 9/- WAS MADE BY THE LD. A.O. BY OBSERVING THAT NO DETAILS IN RESPECT OF INTEREST CL AIMED WERE FILED. HOWEVER, ON THE OTHER HAND, THE LD. AR OF THE APPELLANT HAS CON TENDED THAT EVIDENCES FOR CLAIM OF INTEREST U/S 24 WERE FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE LETTER DATED 16/06/2016. THEREFORE, THE DISALLOWANC E OF INTEREST SO MADE BY A.O. IS BASED ON MERE SUSPICION AND SURMISES. BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 AFTER A PERUSAL OF THE DETAILS FURNISHED BEFORE THE UNDERSIGNED (AS PURPORTEDLY CLAIMED TO HAVE BEEN FURNISHED BEFORE THE LD. A.O. ALSO), IT IS NOWHERE CLEAR AS TO WHERE THE AGGREGATE AMOUNT OF INTEREST CLAIMED OF R S. 5,18,919/- IS REFLECTED. IN DEED, THE APPELLANT HAD FURNISHED BEFORE THE UNDERS IGNED, WITHOUT ANY PETITION UNDER RULE 46A OF THE INCOME TAX RULES, A CERTIFICA TE DATED 21/01/2017, FROM THE FEDERAL BANK THAT THE LOAN ACCOUNT HAS BEEN CLOSED. CLEARLY THE IMPUGNED ORDER WAS PASSED IN THIS CASE ON 26.09.2016 AND HENCE THE SAID CERTIFICATE DATED 21/01/2017 COULD NOT HAVE BEEN FILED BEFORE THE LD. A.O. ON OR BEFORE 26.09.2016. I FAIL TO APPRECIATE THAT ON ONE HAND THE APPELLANT HAS CONTENDED THAT HE HAD FURNISHED THE DETAILS BEFORE THE A.O. AND ON THE OT HER HAND, THE APPELLANT HAS PLACIDLY FURNISHED ADDITIONAL EVIDENCES WITHOUT ANY PETITION UNDER RULE 46A OF THE ACT. EVEN MORE, IN THE SAID CERTIFICATE, THE AMOUNT OF INTEREST PAID JOINTLY BY THE CO-OWNERS IS NOWHERE STATED, LEAVE APART THE INDIVI DUAL SHARE OF EACH CO-OWNER WHICH WOULD HAVE BEEN DETERMINED BASED ON THE RATIO OF PAYMENTS MADE TOWARDS THE LOAN ACCOUNT BY EACH CO-OWNER. IN THE ABSENCE O F ANY SPECIFIC DETAILS AND CERTIFICATE AS REQUIRED U/S 24 OF THE ACT, THE DIS ALLOWANCE OF INTEREST OF RS. 2,59,459/- U/S 24 MADE BY THE A.O. IS HEREBY IS CON FIRMED. 5. WE HAVE GONE THROUGH THE OBSERVATION OF THE LD. CIT(A) AND SEEMS TO US THAT THE ASSESSEE HAD FILED THE NECESSARY CERTIFICATE TO CLAIM THE INTEREST U/S 24 OF THE ACT,HOWEVER NEITHER THE ASSESSING OFFICER NOR THE L D. CIT(A) HAS EXAMINED IT THEREFORE, WE ARE OF THE VIEW THAT THIS ISSUE SHOUL D BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE INTEREST CERTI FICATE U/S 24 OF THE ACT. THEREFORE WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER.THE LD. AO IS DIRECTE D TO EXAMINE THE CERTIFICATE U/S 24 OF THE ACT AND ALLOW THE CLAIM OF THE ASSESSEE I N ACCORDANCE WITH LAW. 6. IN THE RESULT, STATISTICAL PURPOSES THE APPEAL O F THE ASSESSEE IS TREATED TO BE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 24.07.2019 SD/- ( A.T. VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 24/07/2019 ( SB, SR.PS ) BINOD KUMAR DAGA ITA NO.40/GAUL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 COPY OF THE ORDER FORWARDED TO: 1. BINOD KUMAR DAGA, GUWAHATI 2. ACIT, CIRCLE-4, GUWAHATI 3. C.I.T(A)- 4. C.I.T.- GUWAHATI 5. CIT(DR), GAUHATI BENCH, GUWAHATI. 6. GUARD FILE. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY / DDO / H.O.O ITAT, GAUHA TI BENCH