2018 (2) TMI 259

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....ome tax Act 1961 2 That on the facts and circumstances of case and in law, the assumption of jurisdiction by the CIT u/s 263 is merely a change of opinion on the same set of facts and deserves to be quashed and set aside. 3 That on the facts and circumstances of the case and in law, the precondition for initiation of proceedings under section 263 are not satisfied by the Ld. CIT. 4 That onthe facts and circumstances of the case and in law, the Ld. CIT(A) has erred in disallowing interest of Rs. 17,92,224 out of total interest of Rs. 39,91,530 claimed u/s 24(b) of the Income tax Act, 1961. 5 The appellant prays leave of the Hon'ble Tribunal to add, amend, alter all or any grounds of appeal as the circumsta....

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....enewal /reconstruction of property from which rental income was taxable and was allowable deduction. The property under reference was jointly owned by the assessee and her husband Mr. Kamal Karmakar. The entire rent received from the property was being offered by the assessee only. The loan no. LBDEL00001204691 was sanctioned in the name of assessee which was for acquiring the property under reference only. The name of her husband was only mentioned as co-applicant. The interest on said loan was paid from her account only. The loan no. NHDEL00000729964 was though for the property under reference but not borrowed by the assessee. It was borrowed by her husband Mr. Kamal Karmakar who though was shown joint owner, as per assessee's own admissi....

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....allowable in the hands of assessee as per provision of section 24 (b) of the Act. To that extent the AO has erroneously allowed the interest claimed by the assessee." 6. Being aggrieved by the same, the assessee is in appeal before us. 7. The Ld. AR submitted that the assessee herself is offering rental income and in-fact the interest for the second loan paid by the husband was from the funds which were given by the assessee herself in the past. The said details were submitted before the Assessing Officer and the Assessing Officer after verification has passed proper order. 8. The Ld. DR submitted that this case is squarely covered by the ratio of Hon'ble Apex Court in case of Malabar Industrial Company Ltd. Vs. CIT 243 ITR 83 wher....