TaxTMI 
TaxTMI 
2023 (11) TMI 1451
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....se the Ld. CIT (A) has erred in deleting the addition of Rs. 2,67,51,318/- u/s 24(b) of the Income tax Act, 1961 (Rs. 13,93,95,296/- minus Rs. 11,26,43,978/-) made by the AO. 2. That the order of Ld. CIT (A) is erroneous and is not tenable on facts and in law. 3. That the grounds of appeal are without prejudice to each others. 4. That the appellant craves leave to add, alter, amend or forego any ground(s) of the appeal raised above at the time of hearing." 2. The brief facts of the case as mentioned in the order of the Ld. CIT (A) are that the Assessee company is engaged in the business of renting of immovable property and rendering of amenities and maintenance services. During the year, the Asse....
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....ection 24(b) of the Act, therefore, submitted that the order of the Ld. CIT (A) requires no interference. 5. We have heard both the parties and perused the materials available on record. The Ld. AO while restricting the amount of deduction of interest claimed Under Section 24(b) of the Act Rs. 11,26,43,978/- as against Rs. 13,93,95,296/- claimed by the assessee observed as under: "Deduction u/s 24(b) of the IT Act Further the assessee is claiming deduction u/s 24(b) of the IT Act, 1961 amounting to Rs. 13,93,95,296/- on account of interest paid. From the perusal of the accounts it is seen that assessee has claimed interest expense of Rs. 16,54,25,141/- in its P&L Account. From the details filed it is....
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....hile deleting the addition held as under: "3.8.1 Thus, in the preceding AY, it was seen that loans totaling Rs. 113 cr. had been utilized in the gross value of building (excluding depreciation) totaling Rs. 131.48 cr. During the assessment year 2012-13 as per the chart furnished before the undersigned the appellant has claimed interest cost of Rs. 19.61 crores u/s 24(b) on loans totaling Rs. 114.34 cr. Out of the total loan of Rs. 139.70 crores utilized during the year the appellant has claimed the pro rata interest of Rs. 19.61 crores on the loan of Rs. 114.34 crores utilized towards the impugned house property, on the basis of percentage of loan utilized for house property out of total borrowing....
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....2 During the year the loans taken in the earlier years of Rs. 50 crores from Religare Finvest has been repaid by new loan from ANR Securities on 15.04.2011 and on sanction of the loan of Rs. 139 crores from the Standard Chartered Bank in May, 2011, the loan account of ANR Securities has been repaid. It is understood that following foreclosure of the loan account of Standard Chartered Bank the outstanding loan of Rs. 55 crores of SCB was replaced by a loan from Today Holding on 13.05.2011 and replaced by the sanction and drawal of loan of Rs. 139 crores from the Standard Chartered Bank on 18.05.2011. It is further understood that the SCB loan totaling Rs. 74.70 crores was down sold to IDFC on 29.07.2011 and continued....
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....ction u/ s 24(1)(vi). The interest paid on the loan claimed is thus per se allowable under the provisions of the present provisions of section 24(b) of the I.T Act. Similar facts obtain for AY 2013-14 wherein interest has been paid to Standard Chartered Bank, IDFC Bank Ltd. towards the building as well as interior work. Thus, as per the preceding discussion, it is held that the interest claimed in both the years u/s 24(b) is fully allowable and is not to be restricted. Ground no. 4 for A.Y. 2012-13 & Ground no. 2 for A.Y. 2013-14 are allowed." 7. The Ld. CIT (A) observed that there have been many loan transactions, by way of replacement of loans taken with new loans, but nowhere it is seen that total interest cost allocated or the loan a....