House property interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2012 An assessee had purchased a flat for Rs. 28.50 lakhs and made full cheque payment.but the Builder registered for 17/50 lakhs balance charged for deposits, interiors, car park maint etc.Reg the cost of the flat, rs.25.00 lakhs was put in as loan from bank to invest in the flat.
The property was let out & rental income offered for tax and interest on H/loan claimed and net result from the Income from the H/p was Loss. This case selected for scrutiny. The Assessing officer has allowed the interest on H/loan proportionately to the sum the flat registered for and balance he has disallowed stating the reason cost of the flat has been considered to the registered value and not invested amount by borrowings made. Is the A.O right in doing so. Any case laws available to fight this case in the appeal.

CA. Vikash Dwivedi

CA. Vikash Dwivedi (Expert)
Follow

21 January 2012 logically AO is correct. coz deduction is for house property the value of whihc is derived with ref to Registrd value.

you need to screw up builder who is trying to deceit you. may be you can file a case agains him in Competition act 2002 for voilation of setion 4 (absue of dominat posiition).

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2012 tks for the reply

Upgrade to CAclubindia Pro. Subscribe Now!