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TMI Blog2022 (5) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... f the learned Counsel that had it been interest on business loan the assessee has right to claim it from business income and computed total income (loss) would have been the same We do not find any justification in learned CIT(A) stating that he has allowed interest claimed under section 24(b) of the Act at ₹ 1,50,000 for the reason that interest certificate does not justify for housing home loan whereas the learned CIT(A) himself has admitted that the assessee was sanctioned loan of ₹ 9.8 crore from India Bull against residential property for the four flats cited supra. It is also evident from the findings of the learned CIT(A) s order that the assessee obtained loan from DCB Bank for repayment of this housing loan and stated that the borrower namely Mrs. Subra Subir Kumar Banerjee, have jointly been granted business loan. In view of the forgoing discussions, we are of the considered opinion that the AO as well as the learned CIT(A) ought to have accepted the claim of interest paid to DCB Bank by the assessee and consequently, we set aside the impugned order passed by the learned CIT(A) and direct the Assessing Officer to allow interest paid to DCB bank by deleting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Brief facts are, the assessee for the year under consideration filed return of income on 24th February 2012, deriving income from Partnership Firm namely Shri S.K. Banerjee, M/s. S.A.S. Dev Engg., M/s. Banerjee Brothers and M/s. Vidarbha Aua Equipment. The assessee has claimed loss on house property at ₹ 2,12,48,762, stating home loan, repayment interest and principal of ₹ 3,65,99,915. The Assessing Officer sought explanation from the assessee to furnish proper verification of the genuineness of the claim made by the assessee, the details with documentary evidences and justification thereof was also called for. The Assessing Officer also called for the details to prove with documentary evidences in respect of the loan taken as per claim of home loan taken were utilized for house property only. The propertywise details regarding receipts and expenditure thereto were also called for and justification thereof. In response, the assessee produced the documents which were placed on record before the Assessing Officer. The loan repayment interest certificates for the relevant period were also produced before the Assessing Officer. The Assessing Officer, however, in the light ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness loan certificate. According, the AO is found justified in making disallowance of interest totaling ₹ 1,12,37,579, in case of appellant. However, appellant is found entitled for deduction of interest of ₹ 1,50,000, in respect of HSBC housing loan for self occupied property. Therefore, addition of ₹ 1,12,37,579, is hereby confirmed. The assessee being aggrieved with the order so passed by the learned CIT(A), filed appeal before the Tribunal. 6. Before us, the learned Counsel, Shri Manoj G. Moryani alongwith Shri Bhavesh M. Moryani, appearing for the assessee, submitted that the assessee has claimed interest on loan taken for acquiring let-out flats no.3603, 3502, 3601 and 3604 at Octavious, Pawai, Mumbai. The assessee had taken three loans from DCB Bank. These loans were taken by the assessee on 27th February 2010, for re-payment of housing loan taken from India Bulls Housing Finance Ltd. (IBHFL) for acquiring four flats in Octavious Building, Pawai, Mumbai. The housing loan taken from IBHFL was taken in the month of December 2007 at ₹ 9.8 crore which is evident from the copy of the housing loan certificate which clearly speaks about home loan ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was filed after the due date and the loss was not allowed to carry forward to the subsequent year. The assessee gained nothing in claiming such interest and there was no mala filed intention while claiming the interest. The interest was claimed only because it was a housing loan interest which was duly paid by the assesse during the previous year relevant to the assessment year 2011-12. The learned Counsel further submitted that the learned CIT(A) has allowed interest claimed u/s 24(b) of the Act at ₹ 1,50,000 only and simply stating that the interest certificate does not justify for housing home loan which is not correct from the face of the record. The learned CIT(A) has admitted in Para-4 of the learned CIT(A) order that the assessee was sanctioned loan of ₹ 9.8 crore from India Bull against residential property viz. flat no.3502, 3603 (A,B,C) / 3601, 3604 (A B). The learned CIT(A) also given a finding that the assessee has taken loan from DCB Bank for repayment of this housing loan and stated that the borrower namely Mrs. Subra Subir Kumar Banerjee, have jointly been granted business loan. The learned Counsel submitted that as per the copy of the loan sanction lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial available on record in the light of the case laws relied upon by the learned Counsel for the assessee. We find that the assessee claimed interest on loan taken for acquiring few let-out flats situated at Octavious building, Pawai, Mumbai, for which the assessee borrowed three loans from DCB Bank on 27th February 2010, for making re-payment of housing loan taken from India Bulls Housing Finance Ltd. (IBHFL) for acquiring the aforesaid flats in Octavious Building, Pawai, Mumbai. We also find that in the month of December 2007, a housing loan for an amount of ₹ 9.8 crore was taken from IBHFL which is evident from the copy of the housing loan certificate, a copy of which is available at Page-4 of the Paper Book wherein it is evident that the home loan home equity loan from India Bulls were stated that the property financed by the loan is for the purpose of acquiring said four flats situated at Octavious Building (supra), copies of sanction letter is placed at Page-5 to 7 of the Paper Book, foreclosure receipts dated 27th February 2010, issued by India Bulls are placed at Page-8 to 10 of the Paper Book. It is also evident that the assessee had filed the certificate of repayme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al which is used for the purpose of acquiring, construction, repairing, renewing or reconstruction of property. The expression used in section 24(b) is property and not the residential or commercial property. Therefore, irrespective of the nature of theproperty whether it is residential or commercial deduction has to be allowed u/s 24(b) of the Act. As far as the third proviso to section 24(b) of the Act is concerned, all the provisions of section 24(b) of the Act deal with the property referred to in section 23(2) of the Act which refers to a residential property. The proviso only carves out an exception to section 24(b) of the Act, insofar as it relates to property used for residential purpose and does not deal with or curtail the right of an assessee to get the deduction on interest paid on loans borrowed for the purpose of constructing commercial property. The other judicial pronouncements relied upon by the learned Counsel for the assessee also supports the case of the assessee, even on facts also, as per the evidences submitted by the learned Counsel. We do not find any justification in learned CIT(A) stating that he has allowed interest claimed under section 24(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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