Income under any head of income is to be computed following the computation provisions only

Brief of the case

 In the case of Akansha Ranju Pilani vs. Income Tax officer, (ITAT Mumbai) has held that Only the expenditure/outgoings specified under the relevant head of income and, further, subject to the conditions specified in respect thereof, stand to be allowed in computing the income under that head of income. Merely because the assessee may have incurred expenditure toward or in relation to an income falling under a particular head of income, would not by itself be sufficient to allow the same.

Facts of the case

1. The assessee’s borrowing from bank was toward and, in fact, utilized for/invested in a residential house, income from which is assessable u/s.22. The property being self occupied, the assessee in fact claimed and was allowed interest on the said home loan to the extent permissible in computing the income under the said head of income for such, i.e., self occupied, property, at Rs.1,50,000/-. The balance interest (Rs.14,19,007/-) was set off against the assessee’s interest income on loan (at Rs.15,34,628/-) to one, M/s. Shubham International.

2. AO has disallowed claimed of assessee and added Rs 14,19,007/-, since maximum allowance u/s 24 in case of self occupied properties is Rs 1,50,000/- any excess interest cannot be allowed under that section. And deduction of balance interest of Rs 14,19,007 cannot be allowed against income from other sources as per the provision of the Income Tax Act. Assessee couldn’t able to succeed in before CIT(appeal). Hence, therefore, aggrieved by the decision of CIT(A) , Assessee file an appeal before ITAT.

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