2023 (3) TMI 1089

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....are common, for the sake of convenience, these appeals are being heard together and disposed off, by this consolidated order. 2. The assessee has, more or less, raised common grounds of appeal for both the assessment years and challenged disallowance of deduction  claimed u/s24(b) of the Act, in respect of interest paid on borrowed capital while computing income from house property. Therefore, we deem it not necessary to reproduce various grounds of appeal filed by the assessee for both the assessment years. 3. The brief facts of the case are that the assessee is a domestic company, which is engaged in the business of real estate and property development. It had acquired an immovable property and constructed a building thereon with t....

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....aid loan is not deductible u/s.24(b) of the Act, and thus, disallowed deduction claimed towards interest paid to SBI for both the assessment years. 4. Being aggrieved by the assessment order, the assessee has preferred an appeal before the Ld.CIT(A). Before the Ld.CIT(A), the assessee reiterated its arguments made before the AO and submitted that the assessee has availed loan from SBI for completing unfinished building and said construction was completed in the month of October, 2006. Further, the assessee has let out additional building to M/s.Pantaloon Retail (India) Ltd., from January, 2007 onwards. Therefore, it has rightly claimed deduction towards interest paid on housing loan u/s.24(b) of the Act. The Ld.CIT(A) after considering rel....

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....he Act, is no rental income derived from said property, on which, the loan was borrowed from the Bank. The facts remain that the Ld.CIT(A) had admitted the fact that the building construction was completed in October, 2006 and the same has been let out to M/s.Pantaloon Retail (India) Ltd., from January, 2007 onwards. Since, the assessee has let out the building from the AY 2007- 08 onwards, it has rightly claimed deduction towards interest paid on loan borrowed for construction of building u/s.24(b) of the Act. The Ld.CIT(A) without appreciating said facts simply sustained the additions made by the AO on suspicious manner. 6. The Ld.DR, on the other hand, supporting the order of the Ld.CIT(A), submitted that the assessee has availed term l....

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....bank. It was the arguments of the assessee before the AO and the Ld.CIT(A) that loan has been availed for the purpose of construction of unfinished building and further, said building has been completed during the Financial Year relevant to the AY 2007-08. The assessee had also let out said building to M/s.Pantaloon Retail (India) Ltd., from the month of January, 2007 onwards. Therefore, once the building has been let out during the FY relevant to the AY 2007-08, it has rightly claimed interest paid on borrowed loan against rental income. 8. Having heard both the sides and considered relevant material on record, we find that the Ld.CIT(A) had accepted the fact that building was completed in the FYs 2006-07 relevant to AY 2007-08. It was fu....