https://www.taxtmi.com/caselaws?id=445799 The ITAT Mumbai held that the CIT's revision order u/s 263 was invalid regarding the assessee's claim for interest deduction against rental income. The tribunal ruled that the provisos in section 24(b) apply only to individuals claiming deductions u/s 23(2) for self-occupied properties, not to assessees borrowing capital for income-generating rental properties. Since the assessee was in construction and letting business, apportioning borrowed capital costs across business heads was normal practice. The tribunal found that while the AO may not have verified the claim thoroughly, both conditions for invoking section 263 - the order being erroneous and prejudicial to revenue - were not satisfied. The revision order was set aside. en-us Wed, 09 Aug 2023 00:00:00 +0530 Sun, 19 Nov 2023 20:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445799 The ITAT Mumbai held that the CIT's revision order u/s 263 was invalid regarding the assessee's claim for interest deduction against rental income. The tribunal ruled that the provisos in section 24(b) apply only to individuals claiming deductions u/s 23(2) for self-occupied properties, not to assessees borrowing capital for income-generating rental properties. Since the assessee was in construction and letting business, apportioning borrowed capital costs across business heads was normal practice. The tribunal found that while the AO may not have verified the claim thoroughly, both conditions for invoking section 263 - the order being erroneous and prejudicial to revenue - were not satisfied. The revision order was set aside. Case-Laws Income Tax Wed, 09 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445799