2015 (4) TMI 707

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.... Per P.M. Jagtap, A.M. : This appeal filed by the assessee is directed against the order of learned CIT(Appeals)-23, Mumbai dated 30-07-2010 and the solitary issues arising out of the same relates to the disallowance of Rs. 64,54,430/- made by the AO and confirmed by the learned CIT(Appeals) on account of deduction claimed by the assessee for interest paid to partners u/s 24(b). 2. The asses....

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....partners on the amount lying in their capital which was deployed for the purpose of construction of building given on rent. This claim of the assessee was not found acceptable by the AO. According to him, the capital contributed by the partners could never be treated as borrowed capital and interest paid thereon, therefore, could not be allowed as deduction u/s 24(b). He also held that the said ca....

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....of the matter, however, was brushed aside by the learned CIT(Appeals) observing that the claim of the assessee for deduction u/s 24(a) was allowed by his predecessor without examining the basis of the said claim and he confirmed the disallowance made by the AO on a similar issue in the year under consideration mainly for the same reasons as given by the AO. Aggrieved by the order of the learned CI....

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....a similar issue involved in the immediately preceding year i.e. assessment year 2006-07 was decided by the learned CIT(Appeals) in favour of the assessee in the similar facts and circumstances and the said decision of learned CIT(Appeals)d giving relief to the assessee has been upheld by the Tribunal vide its order dated 20th April, 2010 passed in ITA No. 3216/Mum/2009. As held by the Tribunal in ....