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Receipt of rent from children won’t change let-out property to self-occupied for Sec. 24(b) deduction

March 13, 2020[2020] 115 179 (Mumbai - Trib.)

INCOME-TAX : Where assessee claimed deduction of interest on borrowed capital against rental income of house property, however, Assessing Officer finding that assessee was charging rent from his own son and daughter and, thus, treating house property as a self-occupied property, restricted claim of interest under section 24(b) to a particular amount, in view of fact that both daughter and son were financially independent and, as such, instead of transfer of funds to assessee per se, regarded, by mutual agreements, same as rent, as that would, apart from meeting interest burden to that extent, also allow tax saving to assessee-father, it was to be regarded as a genuine arrangement in order to minimise assessee's tax liability and, thus, impugned order passed by Assessing Officer was to be set aside
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