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TMI Blog2013 (8) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... r referred to as "the Act"). The Assessing Officer (AO) has made various additions on account of short- tem capital gain, disallowance of interest claimed u/s.24, disallowance of exemption u/s.10(13A) and addition u/s.68 of the Act. The assessee feeling aggrieved by this order, filed an appeal before the ld.CIT(A) who after considering the submissions of the assessee, partly allowed the appeal. 3. While allowing the appeal, ld.CIT(A) confirmed the addition of Rs.42,371/- in respect of the disallowance of interest and the disallowance u/s.10(13A) of Rs.1,11,168/-. Against these two confirmation of additions, the assessee is further in appeal before this Tribunal. 4. The first ground relates to the disallowance of Rs.42,371/- being disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Ld.counsel for the assessee. We find that the AO disallowed this claim of the assessee without assigning any reason and the ld.CIT(A) has simply confirmed the amount without assigning reason as to how this amount is not admissible. The contention of the counsel is that the assessee has paid interest on borrowed capital for construction of house to City Bank of Rs.52,964/- which was related to pre-construction period. The assessee has claimed this interest as part of cost of construction and accordingly claimed in the return of income. It is further submitted that the interest expense related to pre-construction period either can be added to cost of construction or can be claimed 1/5th every year. The assessee has claimed the interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee is entitled for exemption u/s.10(13A) of the Act. She submitted that in support of the expenditure of house rent, requisite details and evidences were filed before the ld.CIT(A) who had called for a remand report from the AO. She submitted that the reasoning given by the AO and the ld.CIT(A) are different in disallowing the exemption. 6.1. On the contrary, Sr.DR for the Revenue supported the orders of the authorities below. Sr.DR pointed out that the AO in the remand report has submitted that the assessee has claimed the house owned by him as self-occupied and therefore, the authorities below were justified in disallowing the claim of the assessee. 7. We have heard the rival submissions, perused the material available on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (13A) or not. For the sake of clarity, section 10(13A) is reproduced hereinbelow:- Section 10(13A):- (13A) any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations. Explanation.-For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply in a case where- (a) the residential accommodation occupied by the assessee is owned by him; or (b) the assessee has not actually incurred expenditure on paym ..... X X X X Extracts X X X X X X X X Extracts X X X X
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