1984 (2) TMI 167

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ter alia from properties. It appears that some times in 1966-67 the family had constructed certain godowns in respect of which it had borrowed funds to enable it to finish the construction of the said godowns. The peak investment in the property in question was in R.N. year 2026 corresponding to the asst. yr. 1970-71 when the investment stood at Rs. 3,66,681. As against it, the borrowed capital wa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e were given over to six co-parceners @ Rs. 27,000 per godown. One godown remained with the family. The two co-parceners to whom to godown could be given were given cash @ Rs. 27,000 each. The partial partition was thus completed. The family, after the aforesaid partial partition, was left with the R.C.C. godowns constructed in R.N. years 2022 to 2024 and one godown out of seven godowns constructe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of s. 24 of the IT Act, 1961. According to the assessee, such interest was Rs. 32,906. The ITO did not dispute the proposition that the assessee was entitled to deduction under the aforesaid clause with regard to interest paid on borrowed capital. But the disputed the quantum of interest claimed by the assessee. According to him, the family had been partially partitioned in Sambat year 2033 and, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... , it is noticed that none of the authorities below have given the basis of their estimate. It is not clear as to what is the capital on which Rs. 18,280 is the interest, which has been allowed by them and as to why they think that amount of capital only is relatable to the properties which have been retained by the family, namely, seven godowns constructed in R.N. years 2022 to 2024 and one of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... to the assessee as deduction. For working out of the above claim, I set aside the orders of both the authorities and restore the matter back to the ITO with the direction that he should take into account the facts on record and in the light thereof, he should redetermine the question of allowability of interest under s. 24(1) (vi) of the IT Act, 1961. The assessee would, of course, give such deta .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X