ANNATPAL SINGH SHEKHAWAT, Jaipur V. ITO, Jaipur

ITA 462/JPR/2015

• Counselvise Citation: 46223114 RSA 2015
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 11-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA CIT DHK
• Assessee Lawyers: G M MEHTA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH IH-DS-CALY] YS[KK LNL; DS LE{K BEFORE: SHRI P.K. BANSAL, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 462/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11. ANANTPAL SINGH SHEKHAWAT, FLAT NO. 101, D-4, MEERA MARG, BANI PARK, JAIPUR. CUKE VS. THE INCOME TAX OFFICER, WARD 3(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR/ NO.: BETPS 5418 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI G.M. MEHTA, C.A. JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA, ADDL. CIT LQUOKBZ DH RKJH[K@ DATE OF HEARING : 06/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 6/11/2015 VKNS'K@ ORDER PER P.K. BANSAL, A.M. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT (A) DATED 05/02/2015. THE FIRST GROUND OF APPEAL READS AS UN DER :- THE LD. CIT (A) HAS ERRED ON FACTS AND IN LAW IN SUSTAINING DISALLOWANCE OF DEDUCTION OF RS. 3,79,780/- MADE BY THE LD. AO O N ACCOUNT OF INTEREST PAID TO BANK ON LOANS TAKEN AGAINST SECURITY OF BAN K FDR WITH THE SAME BANK INSTEAD OF TAKING PREMATURE ENCASHMENT THEREOF . 2. THE BRIEF FACTS RELATING TO THIS GROUND IS THAT THE ASSESSEE HAS TAKEN LOAN FROM THE BANK AGAINST FDR WITH THE BANK. THE INCOME FRO M THE SAID FDR BEING THE INTEREST 2 ITA NO. 462/JP/2015 ANANTPAL SINGH SHEKHAWAT VS. ITO JAIPUR. HAS BEEN ASSESSED UNDER THE HEAD INCOME FROM OTHER SOURCES. FROM THE INTEREST ON FDR THE ASSESSEE HAS CLAIMED INTEREST ON LOAN TAKEN ON FDR AND RETURNED THE NET INTEREST. THE AO DID NOT ALLOW THE CLAIM OF THE ASS ESSEE OF RS. 3,79,780/-. WHEN THE MATTER WENT IN APPEAL BEFORE LD. CIT (A), THE LD. C IT (A) ALSO CONFIRMED THE ORDER OF THE AO. 3. I HEARD THE RIVAL SUBMISSION AND CAREFULLY CONSI DERED THE SAME. IN MY OPINION, THE ASSESSEE IS NOT ENTITLED FOR THE DEDUCTION IN T HIS CASE AS THE INCOME FROM INTEREST HAS BEEN ASSESSED UNDER THE HEAD INCOME FROM OTHER SOURCES WHICH HAS NOT BEEN DISPUTED BY THE ASSESSEE. UNDER SECTION 57, WHILE COMPUTING THE INCOME FROM OTHER SOURCES, ONLY THAT INTEREST CAN BE DEDUCTED WHICH H AS BEEN INCURRED BY THE ASSESSEE FOR THE PURPOSE OF EARNING THE SAID INTEREST. IT IS UNDISPUTED FACT THAT IT IS NOT THE CASE THAT THE ASSESSEE HAS MADE THE FDR AFTER INVESTING THEREIN THE BORROWED FUND. IT IS THE CASE THAT THE ASSESSEE WAS HAVING THE FDR ON WHICH HE EARNED THE INTEREST BUT ON THE SECURITY OF THE FDR, ASSESSEE HAS TAKEN THE LOAN. THE LOAN SO TAKEN CANNOT BE REGARDED TO HAVE BEEN TAKEN FOR THE PURPOSE OF EARN ING THE INCOME ON FDR. I, THEREFORE, SUSTAIN THE ORDER OF LD. CIT (A). THUS T HIS GROUND NO. 1 STANDS DISMISSED. 4. GROUND NO. 2 RELATES TO THE SUSTENANCE OF RS. 43 ,250/- AS THE INCOME FROM OTHER SOURCES WHICH WAS RETURNED BY THE ASSESSEE AS INCOM E FROM AGRICULTURAL LAND. 5. AFTER HEARING RIVAL SUBMISSIONS AND GOING THROUG H THE ORDERS OF THE TAX AUTHORITIES BELOW, I NOTED THAT THE ASSESSEE WAS HA VING 5 BIGHA 19 BISWAS OF AGRICULTURAL LAND, COPY OF KHASRA GIRDAVARI AND JAM ABANDI WAS DULY FILED BY THE ASSESSEE BEFORE THE AO. THE ASSESSEE HAS RETURNED T HE AGRICULTURAL INCOME AT RS. 3 ITA NO. 462/JP/2015 ANANTPAL SINGH SHEKHAWAT VS. ITO JAIPUR. 43,250/- WHICH IN MY OPINION IS QUITE REASONABLE. K EEPING IN VIEW THE AGRICULTURAL LAND OWNED BY THE ASSESSEE, I ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT (A) ON THIS ISSUE AND DIRECT THE AO TO TREAT A SUM OF RS. 43,250/- AS THE AGRICULTURAL INCOME OF THE ASSESSEE IN PLACE OF INCOME FROM OTHER SOURCES. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS P ARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 6/11/2015. SD/- IH-DS-CALY ( P.K. BANSAL ) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 6/11/ 2015 DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI ANANTPAL SINGH SHEKHAWAT, JAIPU R. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD 3(2), JAIPUR. 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 462/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 462/JP/2015 ANANTPAL SINGH SHEKHAWAT VS. ITO JAIPUR.