Bombay H.C : Whether, on the facts and in the circumstances of the case and on a true interpretation of the provisions of s. 26 of the Act, the assessee was entitled to deduction of the interest paid by him on a loan raised by him for contributing his share of the price and cost of construction of the property in computing his income from the house property ?

High Court Of Bombay

CIT vs. Saifuddin M. Moonim

Section 26

S.P. Bharucha & T.D. Sugla, JJ.

IT Ref. No. 81 of 1976

17th November, 1988

Counsel Appeared

Jetly with Mrs. Manjula Singh, for the Revenue : Dilip Dwarkadas instructed by M/s. Dadhich & Co., for the Assessee

D. SUGLA ,J.:

The only question raised in this reference application at the instance of the Revenue reads thus :

“Whether, on the facts and in the circumstances of the case and on a true interpretation of the provisions of s. 26 of the Act, the assessee was entitled to deduction of the interest paid by him on a loan raised by him for contributing his share of the price and cost of construction of the property in computing his income from the house property ?”

Counsel are agreed that the question has to be answered in the affirmative and in favour of the assessee in view of this Court’s judgment in the case of CIT vs. Abdullabhai M. Moonim (1982) 26 CTR (Bom) 250 : (1981) 132 ITR 642.

Accordingly, the question is so answered.

No order as to costs.

[Citation : 186 ITR 321]

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