Prathvi Raj v. The DCIT

Parties Involved

Facts Summary

The assessee, a Doctor by profession, filed his return of income for the year under consideration on 27.06.2009, declaring a total income of Rs.5,36,393/- after claiming deduction of Rs.1,25,366/- towards housing loan interest, Rs.1,00,000/- being deduction under section 80C of the Income Tax Act, 1961 (hereinafter called “the Act’). The assessee also claimed TDS of Rs.63,236/- deducted by the employer. The Assessing Officer processed the return under section 143(1) of the Act without allowing the benefit of TDS of Rs.63,236/- and interest on housing loan of Rs.1,25,366/-. The assessee filed a rectification application under section 154 of the Act before the Assessing Officer with the request to give the benefit of TDS and also allow interest on housing loan. The Assessing Officer, in the rectification order dated 01.05.2023 passed under section 154 of the Act, allowed the benefit of TDS of Rs.63,236/-. However, deduction of interest on housing loan of Rs.1,25,366/- was not given to the assessee, observing that “the assessee did not claim deduction with respect to interest paid on housing loan in the ITR of the year, therefore the same is not allowed”. Aggrieved, the assessee preferred an appeal before the NFAC. However, the appeal before the NFAC came to be dismissed.…

Legal Issues

• 1. The Ld. authorities below have erred in law as well as on facts in not allowing the deduction of interest of Rs.1,25,366/- on loan availed by assessee for construction of self-occupied house.

Judgment Outcome

Decided in favour of Assessee.

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