The Bangalore bench of the Income Tax Appellate Tribunal ( ITAT ) allowed the claim of deduction under Section 80 C of Income Tax Act 1961 interest on housing loan property.
In response to the demand raised in the order issued under Section 80 C of Income Tax Act 1961 by the Assessing Officer, the assessee lodged an appeal before the First Appellate Authority ( FAA ). However, the appeal filed by the assessee was dismissed by the CIT ( A ).
The counsel for the assessee Venkatesh Sundaresan submitted that the demand has been raised in the order passed under Section 80 C of Income Tax Act 1961 only on account of non-granting of the deduction under Section 80 C of Income Tax Act 1961 and loss incurred under the head ‘income from house property’.
The single bench of the tribunal comprising George George K ( Vice President ) found that for the Assessment Year 2007-08, the income tax return was filed manually on 31.07.2008. During this period, the assessee had resigned from a previous job and joined Microsoft Ltd, which was mentioned in the filed income tax return. The primary request in the current appeal is for the allowance of deductions under Section 80 c of Income Tax Act 1961 and for the interest on the housing loan.
The bench concluded that the matter is being sent back to the AO for a re-examination of the deduction claimed under Section 80 C of Income Tax Act 1961 and interest repayment on the housing loan. Accordingly granted the claimed deductions.
In the result, appeal filed by the assessee was allowed.
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