ITAT disallows claim of interest on home loan by showing SOP as Let out

Shri Hitesh H Budhbhatti Vs ITO (ITAT Ahmedabad) The allowability of interest expenditure on borrowed capital for purchase of residential house under s.24 of the Act is in question. As per Section 23(2) of the Act, the gross annual value of the residential house shall be taken at ‘nil’ where such house is in the occupation of the owner for his own residence or where the owner of the house is prevented from occupying the house owing to his employment etc. at other place. The annual value of such house shall be taken at nil and consequently, the deduction of interest on borrowed capital in s...