By TIOL News Service

CHANDIGARH, FEB 27, 2016: THE issue is - Whether when there are four registered co-owners of a house property, assessee is entitled to deduction against only 25% of interest paid on housing loan. YES is the verdict.

Facts of the case

The assessee is an Individual, who filed return for relevant AY. The said return was processed u/s 143(1) of the Act. Subsequently, the assessee filed a revised return. The case was taken up for scrutiny and notice u/s 143(2) of the Act was issued. A questionnaire along with notice u/s 143(2)/142(1) of the Act was issued. The assessee claimed deduction of interest on housing loan u/s 24(b) of the Act for the property. The AO framed the assessment and made an addition after allowing only 1/4th of the total interest payment u/s 24(b) of the Act. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who dismissed the appeal. Still dissatisfied, the assessee filed an appeal before the Tribunal who also passed order infavour of Revenue. Assessee then filed appeal before the High court.

After hearing parties, HC held that,

++ the authorities below on appreciation of material on record have concurrently recorded that the assessee was entitled to 1/4th deduction, i.e. 25% of the entire interest. Learned counsel for the assessee was not able to demonstrate that the approach of the authorities below was erroneous or perverse or that the findings of fact recorded were based on misreading or misappreciation of evidence on record. The view of the Assessing Officer, the CIT(A) and the Tribunal is a plausible view based on material on record which warrant no interference by this Court. In view of the above, no substantial question of law arises in this appeal. Accordingly, the instant appeal is dismissed.

(See 2016-TIOL-386-HC-P&H-IT)