Soumitra Basu, Kolkata vs Assessee

I .T.A . N o. 22 64 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 06 - 20 0 7

Page 1 of 3

IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA 'SM C' BENCH, KOLKATA

Before Shri George Mathan, Judicial M ember

I.T .A. No . 226 4 /KOL/ 2 01 4 Assess ment year : 2006 -2 00 7

Dr. Soumitra Ba su,.. ............................................................A pp e lla nt P-273, Bloc k A , Ba n gur A ven ue, Kol ka ta -700 055 [PA N : A EDPB 9636 C ]

-Vs.-

Income Ta x Offic er,........ .............................. ........ ...................Resp ond e nt Wa rd -55(2), Kolka ta , 54/1, Rafi A h med Kid wa i Road , Kol ka ta -700 016

Appeara nces by : N o n e, f or the as sessee Shri Rajesh Ku mar, JCIT, Sr. D.R., for th e Depart ment

Dat e of concluding t he hearin g : Feb ruary 26, 2015 Dat e of pr onouncing th e order : Feb ruary 26, 2015

Per Ge orge M athan:

This is an app eal filed by the assess ee a gain st th e order of ld. Commissioner of In co me Tax ( Appeals)-XXXVI, Kolkata in Appeal No. 959/CIT(A)-XXXVI /Kol/ITO,Wd-55(2)/Kol/2009-10 dated 28.08 .2014 for the a sse ss ment year 2006-07.

2. None rep resented on beh alf of the a sse ss ee an d Sh ri R ajesh Kuma r, JCIT, Sr. D.R. rep re sen ted on behal f of the Revenu e.

3. At the time of hearin g, it was sub mitted by the ld. Sr. D.R. that the issu e in the ass essee's app eal was agains t th e action of the ld. CIT(App eals) in confi rmi ng th e addition of Rs.1,32,519/- repres entin g the interest p aid to Bank in respect of the pe rsonal loan tak en by the as se sse e for th e purch ase of veh icle and other expen s es. Ld. Sr. D.R. I .T.A . N o. 22 64 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 06 - 20 0 7

Page 2 of 3

vehemently supp ort ed th e o rder of the Assessin g Of ficer and ld. CIT(App eals).

4. I h ave co nsid ered th e assessment ord er as also the submi ssio n of the ld. S r. D. R. and the ord e r of the l d. CIT(Appeals). A p erus al of the as se ssm ent o rder sh ows that th e As sessin g Offi cer has di sallowed the interest allegedly on the grou nd that i t related to a self-occupi ed house property . Before the ld. CIT(App eal s) the asses see has expl ained the reasons fo r the loan to wards the reconst ructio n of the Chambe r purcha sed and other equipmen ts for no rmal medical p rac tices and fo r dev elopment of hi s Clinic. Fu rther the ld. CIT(Appe als) ha s also recogni zed that the loan was in the n ature of p ersonal loan t aken from Banks and for pu rchas e of vehicle. Ad mittedly the asse ss ee i s a Medical Practition er, the loan taken by the assessee for re-con struction of the Chamber purch ased and other equ ip ment s for the no rmal medical practice s. This i s an allowable exp endi ture. Si milarly the c ar would be a requisi te fo r a Doctor who h as to v isit his clients as also attend to his patient s at va rious Hospit als. Admitted ly the loan having been tak en for the purposes of the business of the as sesse e, the interes t thereon is an allowable expenditure. Consequently the A ss essin g Officer i s di rec ted to grant th e asses see the ben efit o f d eduction of the in te rest a s claim ed by the a sse ss ee.

5. In the result, the appeal filed by the ass essee is allowed.

Orde r p ronounced in th e open Co urt on 26 t h Feb rua ry, 2015.

Sd/-

George Mathan (Judicial M embe r)

Kolkata, th e 26 t h day of Feb ruary , 2015

Co pies to : (1) Dr. Soumitra Ba su, P-273, Bloc k A , Ba n gur A ven ue, Kol ka ta -700 055 I .T.A . N o. 22 64 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 06 - 20 0 7

Page 3 of 3

(2) Income Ta x Office r, Wa rd -55(2), Kolka ta , 54/1, Rafi A h med Kid wa i Road , Kol ka ta -700 016

(3) Comm iss ioner of Income-tax (Appeal s) (4) Com mis sioner of Incom e Tax (5) The Depar tmental R epr es entative (6) Guard Fil e By order

Assistant Registrar Income Tax App ellate Tribunal Kolkata Ben ch es, Kolkata Laha/Sr. P.S.