M/S.dewa Properties Ltd v. The Deputy Commissioner Of Income Tax,Company Circle-Iv (3),Chennai-600 034

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIAND THE HON'BLE DR.JUSTICE ANITA SUMANTH T.C.A.No.947 of 2009 M/s.Dewa Properties Ltd. ...Appellant -Vs- The Deputy Commissioner of Income Tax,Company Circle-IV (3),Chennai-600 034. ...Respondent Appeal filed under Section 260A of the Income Tax Act,1961, against the order of the Income Tax AppellateTribunal, Madras 'A' Bench, dated 22.01.2009, passed in ITANo.2326/Mds/2007 and appeal against the Circle of the order ofthe Commissioner of Income Tax (Appeals)V dated 15.06.2007 inITA.202/2005-06 and appeal against the Circle of the AssistantCommissioner of Income Tax, Company Circle - IV(3), Chennai- 34dated 30.03.2005 in PA No/GIR No.AAACS 5085Q/MU21. For appellant : Mr.R.Vijayaraghavan for M/s.Subbaraya Aiyar Padmanabhan. For respondent : Mr.T.Ravi Kumar, Senior Standing Counsel. [Judgment of the Court was delivered by Dr.Vineet Kothari,J.] Assessee has filed this appeal under Section 260A of theIncome Tax Act, in short, 'the Act', aggrieved by the order,dated 22.01.2009, passed by the Income Tax Appellate Tribunal,in short, 'the Tribunal', Madras 'A' Bench, in ITA No.2326/Mds/2007, for the Assessment Year 2002-2003. https://hcservices.ecourts.gov.in/hcservices/ 2. The questions of law, on which the appeal wasadmitted, are quoted below : “1. Whether on the facts and in thecircumstances of the case and having regard tothe provisions of Section 24 (1) (vi) of theIncome Tax Act,1961, the Tribunal was right inlaw in dismissing the claim of deduction ofinterest adjusted by the tenants against therent due while computing the income from houseproperty ? 2. Whether on the facts and in thecircumstances of the case, the Tribunal wasright in law in resting its decision on theapplicability of the provisions of Section 24(1) (x) read with Rule 4 of the Income Tax Ruleswhen the entire dispute relates to the provisionof Section 24 (1) (vi) relating to allowabilityof interest on deposits/borrowed funds receivedfrom tenants and utilised for construction ofthe house property ? 3. Whether on the facts and in thecircumstances of the case the Tribunal was rightin law in holding that the appellant is notentitled to deduction of interest on interestfree advances to sister concern ? ” 3. As regards Question of Law No1, it has already beencovered by a Division Bench decision of this Court in the caseof M/s.Music World Entertainment Ltd v. The AssistantCommissioner of Income Tax, in T.C.A.Nos.217 to 219 of 2008,decided on 02.12.2010, answering against the Assessee and infavour of the Revenue. 4. On Questions of Law No.2 and 3, learned counsel forthe appellant-Assessee does not press the same, in view of thefindings in the Assessment Order. Learned Standing Counsel forthe Revenue has no objection for the same. 5. This Tax Case Appeal is, accordingly, dismissed. Nocosts.dixit Sd/- Assistant Registrar //True Copy// To 1.The Appellate Authority,Income Tax Appellate Tribunal,Madras 'A' Bench, Chennai. 2. The Commissioner of Income Tax,(Appeals)V,/21 M.C.Road,Chennai - 34. 3. The Assistant Commissioner ofIncome Tax, Company Circle-IV(3),Chennai -34. 4. The Deputy Commissioner ofIncome Tax, Company Circle-IV(3),Chennai -34. +1cc to Mr.T.Ravi Kumar, Advocate, S.R.No.7004+1cc to M/s.Subbaraya Aiyar Padmanabhan, Advocate, S.R.No.7445.T.C.A.No.947 OF 2009ksi(CO)kak(27/02/2019)