The DCIT, (Central), Indore V. Smt. Reena Devi Chug, Indore

ITA 747/IND/2013

• Counselvise Citation: 74722714 RSA 2013
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 26-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA

Judgement Text

PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : ABNOC2567Q I.T.A.NO. 747 /IND/201 3 A.Y. : 2009-10 DY. CIT, (CENTRAL), INDORE. VS. SMT. REENA DEVI CHUG, 19, MANISHPURI COLONY, INDORE. APPELLANT RESPONDENT APPELLANT BY : SHRI R.A.VERMA, SR. DR RESPONDENT BY : SHRI ANIL KAMAL GARG, C. A. DATE OF HEARING : 0 1 . 0 5 .2014. DATE OF PRONOUNCEMENT : 13 .06 .201 4 O R D E R PER JOGINDER SINGH, J. M. THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DATE D 21.10.2013 OF THE LD. FIRST APPELLATE AUTHORITY, IN DORE, ON THE GROUND THAT THE LD. CIT(A) ERRED IN ALLOWING THE CL AIM OF THE ASSESSEE AMOUNTING TO RS. 16,74,618/- MADE ON ACCOU NT OF INTEREST DEDUCTION AGAINST INCOME FROM HOUSE, WHICH WAS DISALLOWED BY THE ASSESSING OFFICER. SMT. REENA DEVI CHUG, INDORE. I.T.A.NO. 747/IND/2013 A.Y. 2009-10 2 PAGE 2 OF 4 2. DURING HEARING OF THIS APPEAL, WE HAVE HEARD SHRI R .A. VERMA, SR. DR AND SHRI ANIL KAMAL GARG, THE LD.COUN SEL FOR THE ASSESSEE. THE CRUX OF ARGUMENTS ON BEHALF OF TH E REVENUE IS IN SUPPORT OF THE ASSESSMENT ORDER BY STATING TH AT THE ASSESSEE CLAIMED LOSS OF RS. 11,64,504/- UNDER THE HEAD INCOME FROM OTHER SOURCES. SINCE THE ASSESSING OF FICER FOUND THAT THE INTEREST PAYMENT WAS NOT PROPER FOR THE PU RPOSES OF EARNING OF INTEREST INCOME, THEREFORE, THE LOSS WAS RIGHTLY DISALLOWED. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE STRONGLY DEFENDED THE CONCLUSION DRAWN ON THE IMPUGNED ORDER, BY SUBMITTING THAT THE PAYMENT OF I NTEREST BY THE ASSESSEE AND OTHER CO-OWNERS TO THE EXTENT OF R S. 41,86,540/- IS EVIDENT FROM THE INTEREST CERTIFICAT E ISSUED BY THE HDFC FOR WHICH ATTENTION WAS INVITED TO PAGE 9 OF THE PAPER BOOK. IT WAS SUBMITTED THAT SINCE THE ASSESSE ES SHARE IN THE PROPERTY AS WELL AS IN THE BORROWING WAS TO THE EXTENT OF 40%, BUT THE ASSESSEE WAS ELIGIBLE FOR CLAIM OF DED UCTION IN RESPECT OF INTEREST PAYMENT ON THE CAPITAL BORROWED FROM HDFC AT RS. 16,74,618/-. SMT. REENA DEVI CHUG, INDORE. I.T.A.NO. 747/IND/2013 A.Y. 2009-10 3 PAGE 3 OF 4 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. THE FACTS IN BRIE F ARE THAT THE ASSESSEE ALONGWITH HER HUSBAND AND SON ACQUIRED A COMMERCIAL PROPERTY AT 305-306, ORBIT MALL, VIJAY N AGAR, FROM FUNDS OF RS. 4 CRORES BORROWED FROM HDFC AND PAID I NTEREST ON IT AMOUNTING TO RS. 41,86,540/-. OUT OF THIS INT EREST, THE SHARE OF THE ASSESSEE IS 40%, WHICH COMES TO RS. 16 ,74,618/-. IN VIEW OF THESE FACTS, THE ASSESSEE WAS ELIGIBLE F OR CLAIM OF SUCH INTEREST EXPENSES ON THE BORROWED CAPITAL. INA DVERTENTLY, IN THE RETURN, SUCH CLAIM WAS MENTIONED AT RS.1,50, 000/-, WHICH INTEREST EXPENSES ALLOWABLE ON SELF-ACQUIRED PROPERTY. THE LD. CIT(A) HAS ALREADY DISCUSSED THE DECISION O F GOETZ INDIA LIMITED, 284 ITR 326 (S.C.), NATRAJ STATIONER Y PRODUCTS PVT.LTD., 312 ITR 22, REMCO INTERNATIONAL, 332 ITR 306 AND JAI PARABOLIC SPRINGS LIMITED, 306 ITR 42 ( DEL ). TOTALITY OF THE FACTS AND THE JUDICIAL PRONOUNCEMENT IF ANALYZE D JOINTLY, WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A), MO ST SPECIFICALLY, WHEN THE SHARE OF THE ASSESSEE IS 40% , WHICH SMT. REENA DEVI CHUG, INDORE. I.T.A.NO. 747/IND/2013 A.Y. 2009-10 4 PAGE 4 OF 4 COMES TO RS. 16,74,618/-. THIS STAND OF THE LD. CIT (A) IS AFFIRMED. 4. THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 13.06.2014. SD/- SD/- ( R. C. SHARMA ) ( JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 13.06.2014. CPU* 8.5