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TMI Blog1991 (1) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee along with the Appeal Memo before the first appellate authority. The said facts are reproduced below : " 1. Your appellant has two self-occupied flats. One flat in Bhavani Complex 'A' and the other flat in Bhavani Complex 'B'. Both the flats are not actually let during any part of the previous year and no other benefit therefrom is derived by the appellant. These facts are not under dispute. The income from self-occupied flat in Bhavani Complex 'B' is taken as Nil. This is as per the contemplation under section 23(2)(a)(i) of the Income-tax Act, 1961, and no deduction whatsoever are claimed. Your appellant has exercised the option as given to the appellant under section 23(2)(b) of the IT Act, 1961. Hence in case of one self-o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sections 23(2)(b), 24(1)(vi) and 24(2) of the Act, the learned Advocate for the assessee vehemently argued that the Income-tax authorities ought to have accepted the assessee's contention that he was entitled to interest deduction of Rs. 55,366 in the first year and Rs. 47,328 in the second year in respect of the Flat at Bhavani Complex 'A' instead of only Rs. 5,000 allowed by them. In this connection, he highlighted the fact that under the said provisions the assessee had an option to select one house for his residence. The restriction regarding deduction of interest to the extent of Rs. 5,000 would be applicable only in the case where the assessee is occupying the house for his own residence. Since the assessee has opted the Flat at Bhava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d uphold the action of the IT authorities. 6. I have carefully considered the rival submissions of the parties. In order to better appreciate the rival stand taken by the parties, it is necessary to reproduce below the relevant portion of the provisions of the Act. Section 23 of the Act which contains provisions for determining annual value. Sub-section (2) thereof reads as under :-- " Section 23. Annual value how determined-- (1) (2) where the property consists of-- (a) a house or part of a house in the occupation of the owner for the purposes of his own residence ;-- (i) which is not actually let during any part of the previous year and no other benefit therefrom is derived by the owner, the annual value of such house or part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the property of the nature referred to in sub-clause (i) of clause (a) of sub-section (2) of section 23. " 7. On proper reading of the aforesaid provisions of the Act, the stand taken on behalf of the assessee has to be accepted. The assessee has been given option to select one of the self-occupied properties to be used for own residence. It is with regard to such property that the interest deduction is restricted to Rs. 5,000. However, there is no such restriction in respect of other self-occupied property which is not used for own residence. The notes on clauses reported in the aforesaid Volume of ITR also support the stand taken on behalf of the assessee. I would, therefore, direct the ITO to accept the assessee's contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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