Smt. Subha Singhvi, Faridabad V. ACIT, New Delhi

ITA 691/DEL/2014

• Counselvise Citation: 69120114 RSA 2014
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 07-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEEHAR RANJAN
• Assessee Lawyers: MANOJ KHANDELWAL; DEVENDRA CHORDIYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.691/DEL/2014 ASSESSMENT YEAR : 2008-09 SUBHA SINGHVI, C/O CHORDIYA & COMPANY, CHARTERED ACCOUNTANTS, 826, SECTOR-15A, FARIDABAD. PAN : ANVPS8348B VS. ACIT, CIRCLE-32(1), NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEVENDRA CHORDIYA, FCA & SHRI MANOJ KHANDELWAL, FCA RESPONDENT BY: SHRI NEEHAR RANJAN PANDEY, ADDL.CIT DATE OF HEARING : 18.06.2015 DATE OF PRONOUNCEMENT : 19.06.2015 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 18.11.2013 IN RELATION TO THE ASSESSM ENT YEAR 2008-09. ITA NO.691/DEL/2014 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE OF FORECLOSURE CHARGES AMOUNTING TO RS .4,30,008/- PAID BY THE ASSESSEE TO ICICI BANK HOUSING LOAN AS INTEREST U/S 2(28A) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE EARNED RENTAL INCOME FROM CERTAIN PROPERTIES AND CLAIMED D EDUCTION FOR INTEREST ON LOAN AMOUNTING TO RS.29,89,223/-. ON PERUSAL OF THE INTEREST CERTIFICATE GIVEN BY THE BANK, IT WAS NOTICED BY TH E AO THAT OUT OF SUCH TOTAL INTEREST, THE ASSESSEE PAID RS.4,30,008/- AS FORECLOSURE CHARGES ON PREPAYMENT OF LOAN TO ICICI BANK. THE AO DID NOT A LLOW DEDUCTION FOR THIS SUM IN THE COMPUTATION OF INCOME UNDER THE HEA D INCOME FROM HOUSE PROPERTY. THE LD. CIT(A) AFFIRMED THE VIEW T AKEN BY THE AO. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL AVAILABLE ON RECORD. I FIND THAT THE ISSUE RAISED IN THIS APPEAL IS DIRECTLY COVERED BY AN ORDER PASSED BY THE MUMBAI B ENCH OF THE TRIBUNAL IN WINDERMERE PROPERTIES (P) LTD. VS. DCIT (2013) 155 TTJ (MUM) 1. IN THIS CASE, THE TRIBUNAL HAS HELD THAT PREPAYMEN T CHARGES MADE FOR EARLY DISPOSAL OF LOAN ARE DEDUCTIBLE AS I NTEREST U/S 24(B) IN ITA NO.691/DEL/2014 3 THE COMPUTATION OF INCOME UNDER THE HEAD INCOME FR OM HOUSE PROPERTY. AS THE FACTS AND CIRCUMSTANCES OF THE IN STANT CASE ARE, MUTATIS MUTANDIS , SIMILAR TO THOSE CONSIDERED AND DECIDED BY THE MUMBAI BENCH OF THE TRIBUNAL, RESPECTFULLY FOLLOWIN G THE PRECEDENT, I OVERTURN THE IMPUGNED ORDER AND ORDER FOR THE GRANT OF DEDUCTION OF FORECLOSURE CHARGES AMOUNTING TO RS.4,30,008/- U/S 24(B) IN THE COMPUTATION OF INCOME UNDER THE HEAD INCOME FROM H OUSE PROPERTY. 5. IN THE RESULT, THE APPEAL IS ALLOWED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 1 9 TH JUNE, 2015. SD/- (R.S. SYAL) ACCOUNTANT MEMBER DATED: 19 TH JUNE, 2015. DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI