Assessee filed return of income declaring rental income from house property and claimed interest deduction under Section 24(b) . Assessing Officer accepted the returned income and completed assessment under section 143(3) . Thereafter, Assessing Officer issued reopening notice against assessee on ground that deduction under section 24(b) had been allowed without a certificate from lender\u00a0 On writ\u00a0 the assessee contended that the property in respect of which deduction of interest was claimed was let out throughout previous year and in respect of which assessee had received rental income which had been offered for tax under head ‘Income from house property’.\u00a0 Further, annual value of property was determined having regard to section 23(1)(b) and restriction on quantum of interest deduction under first and second provisos to section 24(b) would apply only where annual value of property was taken as nil under section 23(2) hence there was no foundation in law to form belief that interest on borrowed capital had been wrongly allowed. Court held that since the assessee’s case did not fall within the second proviso to section 24(b), failure to file a certificate as contemplated in the third proviso would not amount to a conclusion being drawn that there was a failure on the part of assessee to make a full and true disclosure of primary facts as contemplated by the first proviso to section 147. Since no fresh tangible material came into possession of the Assessing Officer post-assessment, reopening based merely on re-examination of existing record or audit objection was invalid. Accordingly, notice issued under section 148 and order disposing of objections filed against notice under section 148 were quashed and set aside. (AY.\u00a0 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.147: Reassessment-Income from house property-Interest-Lender\u2019s certificate-Property was let out throughout the year-Audit objection-Annual value was determined under section 23(1)(b), restriction under proviso to section 24(b) did not apply-Absence of any fresh tangible material-Reassessment notice and order disposing the objection were quashed and set aside. [S. 22, 23(1)(b), 24(b), 148, Art . 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64404","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gKM","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64404"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64404\/revisions"}],"predecessor-version":[{"id":64405,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64404\/revisions\/64405"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}