TaxTMI 
TaxTMI 
2021 (10) TMI 7
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....e has assailed the impugned order on the following grounds before us: "1. On the facts and circumstances of the case and in law the learned CIT (Appeals) -28, erred in confirming the disallowance of deduction under Section 24(b) of The Income Tax Act pertaining to interest on Home Loan amounting to Rs. 2,00,000/- on the ground that the possession of property has not yet been acquired by the appellant. 2. The appellant submits that on the facts and circumstances of the case as well as in law, the said amount of Rs. 2,00,000/- should be allowed as a deduction from the income under the head "income from House Property". 3. The appellate prays for appropriate relief." 2. Briefly stated, the assessee who is a lawyer....
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....ove, I find that there is absolutely no force in the contention of the appellant at all. This is because, it is an admitted position that the particular property in respect of which the appellant is trying to claim the deduction u/s. 24(b) is neither in the possession of the appellant, nor he has any sort of physical domain over the same. In reality, the fact situation of the appellant is that here is a dispute going on between the appellant and the society/builder due to which there is protracted litigation and that the appellant is not in a position to take control/domain of the impugned property. 5.4 It is very clear that section 24(b) pre-supposes that there should be an income chargeable under the head House Property against w....
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....orities. 7. We have heard the ld. Departmental Representative and perused the orders of the lower authorities. Issue involved in the present appeal lies in a narrow compass i.e as to whether or not the lower authorities were justified in law and the facts of the case in declining the assessee's claim for deduction of the interest paid on loan that was utilized for purchasing a residential house vide a registered 'agreement' dated 20.09.2009. As is discernible from the records, the assessee had vide a registered 'agreement' dated 20.09.2009 purchased a residential property, viz. Flat No. A-2101, Palm Beach Residency 'A' Wing, 21st Floor, Sector 4, Palm Beach Road, Nerul, Navi Mumbai for a consideration of Rs. 1,60,89,250/-. For acquiring ....
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....eferred to in the proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed [within [five] years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed. [two lakh rupees]. Explanation.- Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any pan thereof allowed as deduction under any other provision of this Act shall be deducted under this clause in equal instalments for the said previous ....
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....nate upper limit of the amount of deduction qua the properties referred to in sub-section (2) of Sec. 23 of the Act i.e a residential house. However, the aforesaid provisos by no means jeopardizes the entitlement of an assessee to claim deduction of the interest payable by him on the capital borrowed for acquiring, constructing, repairing, renewing or reconstructing a residential property that does not fall within the realm of sub-section (2) of Sec. 23 of the Act. Also, we are unable to persuade ourselves to accept the view of the CIT(A) that as in the absence of any control/domain over the property in question the assessee would not be in receipt of any income from the same, therefore, allowing of deduction under Sec. 24(b) qua the said p....