9911796707
TMI Blog2006 (9) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... - Tribunal based on the material and evidence available on record, allowed the assessee s appeal on this issue and held that the right of attribution is available to the taxpayer to arrange the matters in the way most favourable to him, and the said view, in our considered opinion, does not suffer from legal infirmity to warrant interference. In view of the above, no substantial question of law arises for consideration of this court. In the result, these appeals are dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... hich related to loans taken by the appellant from M/s. Sethu Finance and First Leasing P. Ltd., a sister concern, for the construction of his residential house at Abhirapuram, Chennai The Assessing Officer, thus, came to the conclusion that for the assessment years referred to above income had escaped assessment and reopened all the three assessments by issuing notices under section 148 of the Act. LEASE RENT: 2.2.1. On the issue of lease rent, for all the three assessment years, the appellant had admitted income towards his one-sixth share in the lease rent on account of M/s. Rukmani Theatre. However, the Assessing Officer held that the net lease rents thus admitted by the appellant, i.e, Rs. 6,739 for the assessment year 1992-93, Rs. 7, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was not entitled to deduction towards interest to the extent such interest was attributable to loans taken on his residential house. As specific details were not available to work out such interest, the Assessing Officer worked out the interest in proportion to the investments made by the assessee, year after year, under various heads and allowed interest in respect of those heads in respect of which income had been offered and disallowed the balance. 2.3.2. The Commissioner of Income-tax (Appeals), on appeal by the assessee, laid the proposition to work out allowable and disallowable interests and held that the earlier loans pending as on March 31, 1991, should be adjusted first and only later on the house loan should be adjusted. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rived at by adopting different methods. In such a situation, it is fair and proper that the benefit of the method which is most favourable to the assessee should be allowed to him and the choice of the method to be adopted for determining the value of property should be left to the assessee, and that under the Wealth-tax Act, 1957, the incidence of taxation is the ownership of net wealth. If during the same assessment year the same quantity of wealth in the possession of one co-sharer is subjected to a lower rate of taxation, it would be highly improper to burden a similarly situated co-sharer with a higher rate of tax. If such an action on the part of the assessing authorities is sanctioned, it would militate against the principle of equal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of evidence and therefore, no question of law arises from the order passed by it. 5.1. Issue: (2) - In commercial business activity, when payments were made should it be apportioned to the previous loans outstanding or to the subsequent ones? 5.2. The second issue raised in these appeals pertains to the disallowance of the interest claimed by the assessee under the head "Business". The Assessing Officer as well as the Commissioner of Income-tax (Appeals) held that the payments made by the assessee, when there are more than one loan outstanding can only be credited in the first loan in the commercial business reality and therefore, the claim of the assessee that the previous loans stand unpaid and what has been paid only in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been met from the income derived from property held by the assessee under trust.
5.5. In the instant case, the Tribunal based on the material and evidence available on record, allowed the assessee's appeal on this issue and held that the right of attribution is available to the taxpayer to arrange the matters in the way most favourable to him, and the said view, in our considered opinion, does not suffer from legal infirmity to warrant interference. In view of the above, no substantial question of law arises for consideration of this court.
In the result, these appeals are dismissed. No costs. Consequently, M. P. No.1 of 2006 in T. C. No. 2196 of 2006 and M. P. No.1 of 2006 in T. C. No. 2197 of 2006 are closed. X X X X Extracts X X X X X X X X Extracts X X X X
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