The assessee apportioned the interest on borrowed funds utilised for construction of a building between the let-out area and the area used for its own business. The Tribunal held that the same method had consistently been accepted in earlier years and, there being no change in facts, the interest attributable to the let-out area was rightly allowed as deduction under section 24(b). (AY. 2015-16 & 2016-17).
Dy. CIT v. Piramal Estates (P.) Ltd. (2025) 123 ITR 488 (Mum.)(Trib.)
S. 24 : Income from house property-Deductions-Interest on borrowed capital-Building partly let out and partly used for business-Apportionment of interest on area basis-Deduction allowable.[S. 22]
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