DLG Builders Pvt Ltd, Chandigarh V. Deputy Commissioner of Income Tax, Chandigarh

ITA 457/CHANDI/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5084 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 29-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B K NOHRIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 457/CHD/2016 ASSESSMENT YEAR: 2012-13 M/S DLG BUILDERS PVT LTD., VS. THE DCIT, CIRCLE 4(1 ), SCO 121-123, SECTOR 34A, CHANDIGARH CHANDIGARH PAN NO. AAACD7471R (APPELLANT) (RESPONDENT) APPELLANT BY : SH. B.K NOHRIA, CA RESPONDENT BY : SMT. CHANDERKANTA ADDL. CIT DATE OF HEARING : 27.03.2018 DATE OF PRONOUNCEMENT : 27.03.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S), [HEREINAFTER REFERRED TO AS CIT(A)]-2, CHANDIGARH DATED 02.03.2 016. THE ASSESSEE HAS TAKEN FOLLOWING GROUND OF APPEAL:- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A)-2, CHANDIGARH HAS ERRED IN LAW AND FACTS IN UPHOLDING DISALLOWANCE RS. 24,27,995/- ON ACCOUNT OF INTEREST PAID ON BORROWINGS U/S 24(B) OF ACT ON TECHNICAL GROUND THOUGH THE AMOUNT CLAIMED MATCHES WITH THE CLAIM. ITA NO.457/CHD/2016- DLG BUILDERS PVT LTD., CHANDIGARH 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS RELATIN G TO THE UPHOLDING OF DISALLOWANCE OF RS. 24,27,995/- ON ACCOUNT OF IN TEREST PAID ON BORROWINGS U/S 24(B) OF THE INCOME-TAX ACT, 1961 (I N SHORT 'THE ACT'). THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AMOUNT OF INTEREST WAS PAID BY THE ASSESSEE ON ACCOUNT OF HOU SING LOAN, RENTAL INCOME RELATING TO WHICH WAS ASSESSED BY THE LOWER AUTHORITIES UNDER THE HEAD INCOME FROM HOUSE PROPERTY. THE LD. COUN SEL HAS SUBMITTED THAT THE AFORESAID EXPENDITURE OF INTERES T WAS ALLOWABLE U/S 24(B) OF THE ACT. HOWEVER, THE LOWER AUTHORITIES HA VE DENIED THE CLAIM OF THE ASSESSEE FOR THE REASON THAT THE ASSES SEE COULD NOT ESTABLISH THAT THE AFORESAID PAYMENT OF INTEREST WA S RELATING TO THE PROPERTY, INCOME FOR WHICH HAS BEEN ASSESSED UNDER THE HEAD INCOME FORM HOUSE PROPERLY. HE HAS SUBMITTED THAT THE LOW ER AUTHORITIES HAVE NOT APPRECIATED THE EVIDENCE FILED BY THE ASSE SSEE IN THIS RESPECT. THE LD. COUNSEL HAS, THEREFORE, SUBMITTED THAT HE MAY BE GIVEN AN OPPORTUNITY TO DEMONSTRATE BEFORE THE ASSE SSING OFFICER ABOUT THE FACTS OF HOUSING LOAN AND THEREBY INCURRI NG OF INTEREST RELATING TO THE HOUSE PROPERTY, INCOME FROM WHICH HAS BEEN ASSESSED UNDER THE HEAD INCOME FROM HOUSE PROPERTY. 3. THE LD. DR ON THE OTHER HAND HAS RELIED ON THE F INDINGS OF THE LOWER AUTHORITIES. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. BEFORE US, THE ONLY RELIEF THAT THE ASSESSEE HAS CLAIMED THAT HE MAY BE ALLOWED TO DEMONSTRATE BEFORE THE LOWER AUTHORITIES THE NEXUS BETWEEN THE INTEREST EXPENDITURE AND THE INCOME FROM THE HOUSE PROPERTY. IN OUR ITA NO.457/CHD/2016- DLG BUILDERS PVT LTD., CHANDIGARH 3 VIEW, NO PREJUDICE WILL BE CAUSED TO THE REVENUE IF THE ASSESSEE IS GIVEN AN OPPORTUNITY TO APPEAR AND DEMONSTRATE TRUE FACTS TO THE ASSESSING OFFICER ON THIS ISSUE. IN VIEW OF THIS, THE ISSUE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATI ON AFRESH. NEEDLESS TO SAY THAT THE ASSESSING OFFICER WILL PROVIDE PROP ER OPPORTUNITY TO THE ASSESSEE TO PRESENT ITS CASE AND THEREAFTER WIL L DECIDE THE ISSUE IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HER EBY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :27.03.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR