Hous­ing Loan In­ter­est El­i­gi­ble For Dou­ble De­duc­tion: ITAT Chen­nai

Accommodation Times - - Real Estate Investments - By Staff Re­porter

In­ter­est paid on bor­row­ing for ac­quir­ing house de­ductible u/s 24(b) & 48

The as­sessee bor­rowed funds for pur­chas­ing a house. The in­ter­est paid on the said loan was claimed as a de­duc­tion u/s 24(b). When the house was sold, the in­ter­est paid on the said loan was treated as “cost of ac­qui­si­tion” and claimed as a de­duc­tion u/s 48 in com­put­ing the cap­i­tal gains. The AO held that as the in­ter­est had been al­lowed as a de­duc­tion u/s 24(b), it could not al­lowed again in com­put­ing cap­i­tal gains. The CIT(A) al­lowed the claim. On ap­peal by the de­part­ment to the Tri­bunal, HELD dis­miss­ing the ap­peal: De­duc­tion u/s 24(b) and com­pu­ta­tion of cap­i­tal gains u/s 48 are al­to­gether cov­ered by dif­fer­ent heads of in­come.

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