Loan Prepayment charges allowed as deduction from house property income

The judgment of the Tribunal is correct and revenue is expected to accept it and not to challenge before High Court. The Board can also issue circualr to allow such deductions in practical manner so as to compute real income as far as possible.
Strict interpretations will amount to overlooking ground realities:
In the changed circumstances, we need to be alive with changes. The law as formulated long ago can be considered to have visualized some circumstances, whereas in society and commercial world lot of changes takes place. Therefore, some specific provisions, worded in particular manner can at best be regarded as illustrative of situations. For example, world like ‘interest on capital borrowed for acquisition of house property,…’ if strictly interpreted, may not include interest by way of commitment charges, prepayment charges, late payment charges, etc. as also interest on loan obtained to repay original loan obtained for acquisition of house property. However, considering ground realities, the meaning of such expressions have to be expanded to cover changed circumstances.
There will be no justification, if interest on new loan taken to repay old loan is not allowed. In this case, the fact is not clear, however, when we notice that assessee claimed total deduction of Rs.11.05 crore, it may be a case that interest on new loan taken to repay old loan was also claimed and it was allowed by the AO. Whereas in some other cases, disputes are going on as to whether interest on new loan will be allowed or not u/s 24(b). In ACIT Vs, Sunil Kumar Agarwal (2011) 139 TTJ 49 it has been held that interest on new loan taken to repay old housing loan is also to be treated as loan taken for purchase or construction of house and interest paid on new loan is allowable u/s 24. This ruling is applicable in my case also.