9911796707
TMI Blog2020 (7) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... s the property west in the assessee with effect from 8 April 2014. The assessee has taken a liability to pay the amount borrowed for the purpose of renovation of that house property to the banker. He was also one of the borrowers in that particular loan Case are very straight that assessee is owner of the 1/6 portion of the impugned property for renovation of which the amount was borrowed by the parents and other applicant including the assessee. Any interest arising there on requires to be granted as deduction to the assessee under the provisions of section 24 (b) of the income tax act as assessee is the owner of the property. CIT A merely stated that as name of the assessee has not been entered into the main super records he is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount paid on housing loan and claimed as a deduction under section 24 (b) of The Income Tax Act 1961 made by the learned Deputy Commissioner Of Income Tax, Central Circle, Dehradun made by order under section 153A (1) (b) read with section 143 (3) of The Act passed on 28/12/2018 is confirmed. 02 The brief facts of the case shows that assessee is an individual deriving income from retail trading of gold and silver jewelry and other gift items of gold and silver from his proprietary concern. The assessee filed his return of income under section 139 (4) of the act showing total income of ₹ 527460/ on 25/3/2016. Search took place under section 132 of the Act on 1/12/2016 at business and residential premises in the group of the cases. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r noted that according to the provisions of section 24 (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such loan is granted as deduction. As assessee is merely a co applicant for the loan and not an owner of the house property, he disallowed the claim of the interest expenditure of ₹ 2 lakhs made by the assessee. Accordingly the returned income was assessed at ₹ 7 27460/ . 04 Aggrieved with the order of the learned assessing officer assessee preferred an appeal before the learned CIT A. Before him the assessee submitted an application for admission of additional evidence under rule 46A of The Income tax Rules, 1962 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noted that appellant has only acquired the right of living and does not have any right to sale property. Thus according to him the assessee does not have ownership right with regard to the asset or earn income from the said share of the property. He further noted that even after the lapse of five years from execution of memorandum of family settlement the property is not muted in the name of the assessee. In the end, he held that memorandum of family settlement neither confers an illegal ownership of the property and nor assessee is entitled to earn income from property in his own right. He further noted that family settlement is only for living separately and for payment of housing loan as per mutual agreement. Therefore, he held that memo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction incurred by the parents was also divided in the ratio according to family settlement and consequent borrowings made by the parents of the assessee were divided amongst the owners of the property. The learned CIT A, before whom this document was produced by the assessee held to be a colorable device. However looking at the family settlement we do not find that there is any scheme of arrangement, which can be said to be a colorable device. The only factor that has been stated in the family settlement is that the property is now divided amongst different persons including the parents and their four e sons. It was also mentioned in that deed that each of the member would be entitled to get their names recorded in the munici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by the assessee, according to us he cannot be held to be not the owner of the property. Further, the family settlement deed also cannot be held to be a colorable device without examining the real motive of the deed. There are no conditions except the divisions of the property in the family settlement deed therefore, it cannot be inferred that it is executed with an ulterior motive. According to us, it is a simple partition of the property by the parents in four sons and themselves. Accordingly, we reverse the orders of the lower authorities and direct them to granted deduction under section 24 (b) of the act to the assessee of the interest amount paid of ₹ 2 lakhs on housing loan. Accordingly, all the grounds of the appeal, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
