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TMI Blog2021 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... eceipt of any income from the same, therefore, allowing of deduction under Sec. 24(b) qua the said property would be beyond comprehension. We are afraid that the said view of the CIT(A) is absolutely misconceived and in fact divorced of any force of law. Determination of the annual lettable value of a property - same as per Sec. 22 r.w Sec. 23 of the Act is dependant on the ownership of the property, irrespective of the fact whether the assessee has taken the possession of the same or not - as per the plain literal interpretation of Sec. 24(b) of the Act there is no bar on an assessee to claim deduction of interest payable on a loan taken for purchasing a residential property, though, the possession of the same might not have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the case and in law the learned CIT (Appeals) -28, erred in confirming the disallowance of deduction under Section 24(b) of The Income Tax Act pertaining to interest on Home Loan amounting to ₹ 2,00,000/- on the ground that the possession of property has not yet been acquired by the appellant. 2. The appellant submits that on the facts and circumstances of the case as well as in law, the said amount of ₹ 2,00,000/- should be allowed as a deduction from the income under the head income from House Property . 3. The appellate prays for appropriate relief. 2. Briefly stated, the assessee who is a lawyer by profession had e-filed his return of income for A.Y. 2015-16 on 31.03.2017, declaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all. This is because, it is an admitted position that the particular property in respect of which the appellant is trying to claim the deduction u/s. 24(b) is neither in the possession of the appellant, nor he has any sort of physical domain over the same. In reality, the fact situation of the appellant is that here is a dispute going on between the appellant and the society/builder due to which there is protracted litigation and that the appellant is not in a position to take control/domain of the impugned property. 5.4 It is very clear that section 24(b) pre-supposes that there should be an income chargeable under the head House Property against which the deduction of municipal tax etc., can be claimed. Here, this is not so at all bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lower authorities. Issue involved in the present appeal lies in a narrow compass i.e as to whether or not the lower authorities were justified in law and the facts of the case in declining the assessee s claim for deduction of the interest paid on loan that was utilized for purchasing a residential house vide a registered agreement dated 20.09.2009. As is discernible from the records, the assessee had vide a registered agreement dated 20.09.2009 purchased a residential property, viz. Flat No. A-2101, Palm Beach Residency A Wing, 21st Floor, Sector 4, Palm Beach Road, Nerul, Navi Mumbai for a consideration of ₹ 1,60,89,250/-. For acquiring the aforementioned property the assessee had taken a loan on which interest of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1999 and such acquisition or construction is completed [within [five] years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed. [two lakh rupees]. Explanation.- Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any pan thereof allowed as deduction under any other provision of this Act shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous year:] [ Provided also that no deduction shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idential house. However, the aforesaid provisos by no means jeopardizes the entitlement of an assessee to claim deduction of the interest payable by him on the capital borrowed for acquiring, constructing, repairing, renewing or reconstructing a residential property that does not fall within the realm of sub-section (2) of Sec. 23 of the Act. Also, we are unable to persuade ourselves to accept the view of the CIT(A) that as in the absence of any control/domain over the property in question the assessee would not be in receipt of any income from the same, therefore, allowing of deduction under Sec. 24(b) qua the said property would be beyond comprehension. We are afraid that the said view of the CIT(A) is absolutely misconceived and in fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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