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TMI Blog1989 (1) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to Rs. 31,734 (on account of loan taken by the assessee from her husband Shri Ved Prakash) from the income from house property. 2. The facts of the case are that the assessee. an individual and who is deriving income from three partnerships and other sources apart from own business, started construction of a house for her occupation at M-225, Greater Kailash,New Delhi. She borrowed mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no need or circumstances had arisen warranting the payment of interest by the assessee to her husband. The ITO also referred to a loan advanced by the assessee to her husband in the asst. yr. 1979-80 amounting to Rs. 40,000 which was still outstanding and on which no interest was paid, which according to him showed that the loans either advanced by the assessee to her husband or vice versa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not be said to be erroneous because the facts found by him were not shown to be non-existing before us. It is no doubt true that there was no written agreement for the payment of interest but an oral understanding reached by the parties can be a valid agreement, provided it is not sham or (sic) and was intenced to be acted upon. The conduct of the parties in this case showed that the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s assessed to tax on that amount. In these circumstances, we are of the view that the Commissioner(A) was justified in allowing the assessee s claim. While allowing the assessee s claim the Commissioner(A) had calculated interest on the amount of Rs. 40,000 due to the assessee by her husband and deducted the appropriate interest on that amount and allowed only the balance. We do not know whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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