COMMISSIONER OF INCOME TAX Vs. MASTER SUKHWANT SINGH

JUDGEMENT

(1.) AT the instance of the Revenue, the Income -tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short 'the Tribunal'), has referred the following question of law arising out of its order dt. 29th Aug., 1997, relating to asst. yr. 1991 -92, for the opinion of this Court : 'Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the transaction of allotment of property to the assessee on instalment basis does give rise to the relationship of borrower and lender between the assessee and the estate officer and that interest paid by the assessee on instalments constitutes interest on borrowed capital deductible from income from house property under Section 24(1)(vi) of the IT Act, 1961 ?'

(2.) THE issue raised in this question had come up for consideration by this Court in CIT v. Sunil Kumar Sharma , wherein it was held that the interest portion on the instalments paid to the notified area committee is allowable as a deduction under Section 24(1)(vi) of the IT Act, 1961. The action of the Tribunal, in allowing the relief to the assessee is, therefore, in conformity with the decision in Sunil Kumar Sharma's case (supra). Accordingly, the question is answered in the affirmative i.e., against the Revenue and in favour of the assessee. No costs.