The assessee is  engaged in business of real estate. While computing the income under the head income from house property, the assessee had claimed deduction under S. 24(b) on account of interest paid on borrowed funds. The AO rejected assessee’s claim mainly on two grounds, firstly, assessee had not proved utilization of fund for construction of property and secondly, deduction under S. 24(b) could not be allowed on the basis of area let out. CIT(A) allowed the claim. Tribunal held that  since the AO had not pointed out any major deficiency in allocation of interest expenditure between area used for commercial purpose and area let out, assessee’s claim for deduction was to be allowed. (AY. 2009-10)