LOKNATH LURINDARAM GAMBHIR,SURAT V. ITO, WARD 1(2)(1), SURAT., SURAT

ITA 1009/SRT/2025

AI Insights

The case involves Loknath Lurindaram Gambhir, the appellant, contesting the disallowance of deductions claimed on interest paid on borrowed capital and inter-head adjustment of house property losses for the Assessment Year 2020-21. The Income Tax Officer (ITO) initially disallowed these deductions, which was upheld by the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The primary legal issues revolved around the eligibility of the assessee to claim deductions under sections 24(b) and 71 of the Income Tax Act, despite the loan being taken in the name of his son and the property registered in his name for convenience.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 845974 (ITAT-SURAT)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Surat
• Assessment Year: 2020-2021
• Appeal Filed On: 26-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: RAJESH C. SHAH

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH “SMC”, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.1009/Srt/2025 (Assessment Year: 2020-21) Loknath Lurindaram Gambhir, 3012, Ashoka Tower, Ring Road, Surat-395002 [PAN: AAZPG766N] Vs. ITO, Ward-1(2)(1), Surat (Appellant) .. (Respondent) Appellant by : Shri Rajesh C. Shah, CA Respondent by: Shri Ajay Uke, Sr. DR Date of Hearing 24.03.2026 Date of Pronouncement 27.03.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- The captioned appeal has been filed by the assessee against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide order dated 28.07.2025 relevant to Assessment Year 2020-21. 2. The assessee has raised the following grounds of appeal: 1. The Ld. AO was not justifying in disallowing and Ld. CIT(A) erred in confirming the same for disallowing the deduction of Rs.3,73,918/- claimed as interest paid on borrowed capital u/s 24(b). 2. The Ld. AO was not justifying, and Ld. CIT(A) erred in confirming the disallowance of Rs. 2,00,000/- deduction claimed inter-head adjustment of house property losses u/s. 71. 3. The appellant reserves the right to add, alter, amend, or withdraw any grounds of appeal. Printed from counselvise.com ITA No. 1009/Srt/2025 Asst. Year : 2020-21 - 2– 3. Heard the argument of both the parties and perused the material available on record. 4. The learned AR argued that the assessee is 70 years old and availed a loan of Rs. 2.5 crores in the name of his son, Shri Hardik Loknath Gambhir, which was utilized for the acquisition of the property. After due verification of the facts on record, we come to the following conclusions: 1. The property is registered in the name of the assessee, i.e., Shri Loknath Lurindaram Gambhir. 2. The loan has been availed by the assessee’s son, i.e., Shri Hardik Loknath Gambhir. 3. The responsibility of repayment of the loan rests with the assessee’s son. The property was registered in the name of the assessee for convenience. 5. The issue before us is to determine whether the assessee is eligible for deduction of interest under section 24(b). In view of the facts on record, the assessee is hereby given one more opportunity to submit the interest statement from the bank to the Assessing Officer who shall take due cognizance. The set off from the income of house property is consequential, subjected to allowability of the interest in the hands of the assessee after verification of the interest statement. Printed from counselvise.com ITA No. 1009/Srt/2025 Asst. Year : 2020-21 - 3– 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 27.03.2026. Sd/- (SUCHITRA KAMBLE) Sd/- (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) (True Copy) Ahmedabad; Dated 27.03.2026 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "