IN INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER ITA No. 640/JP/2015 Assessment Year : 2009-10 Shri Krishna Gopal Mathuria cuke ACIT Prop.: M/s. Satya Trading Corporation Vs. Circle- 3 Loha Mandi, S.C. Road, Jaipur Jaipur PAN/GIR No.: ACIPG 3989 L Appellant Respondent Assessee by: Shri Rishabh Agarwal, CA Revenue by:Shri R.A. Verma, Addl.CIT - DR Date of Hearing : 20/09/2016 Date of Pronouncement : 27/09/2016 ORDER PER BHAGCHAND, AM assessee has filed appeal against order of ld. CIT(A)-1, Jaipur dated 8-05-2015 for assessment year 2009-10 raising therein following ground of appeal. ld. CIT(A) has erred in law and facts of case by dismissing rectification application made u/s 154 of I.T. Act ,1961 observing that there is no mistake apparent from record in its previous order making disallowance of interest on housing loan of Rs. 2,68,518/- 2 ITA No. 640/JP/2015 Shri Krishna Gopal Mathuria vs. ACIT, Circle- 3, Jaipur . 2.1 facts in brief are that assessee had not claimed payment of interest of housing loan of Rs. 2,68,518/- in return of income for assessment year 2009-10. It is also noted that during assessment proceedings assessee had claimed for allowing payment of interest on housing loan which is evident from para 9 of page 37 of paper book and submission made by assessee before ACIT-3,Jaipur is reproduced as under:- 9. That assessee paid housing loan interest at Rs. 268517.93 during relevant previous year but by omission this interest was not claimed while computing total income of assessee. This property is used by assessee for residence as well as for business. Rebate of this interest may kindly be given while assessing u/s 143(3) of I.T. Act in view of CBDT circular No. 14(XL-135) of 1995 dated 11- 04-1994. Copy of circular is enclosed in this respect. Proof regarding interest payment is enclosed. This interest was claimed in preceding years also. Computation is enclosed in this respect. 2.2 ld. CIT(A) has not allowed this ground of assessee. ld. CIT(A) has also taken into consideration rectification application of assessee and observed that assessee has filed rectification 3 ITA No. 640/JP/2015 Shri Krishna Gopal Mathuria vs. ACIT, Circle- 3, Jaipur . application after lapse of almost year and reason for delay has not been specified. detailed observation of ld. CIT(A) disallowing rectification application of assessee is reproduced as under:- 3.2 That I have carefully perused assessee's submission and case record of assessee. Further, I have also gone through assessment order and also taken note of factual matrix of case. It is pertinent to mention that assessee has filed rectification application after lapse of almost year and in said rectification application, reason for delay has not been specified. I have also carefully perused case record of ITA No. 238/11-12 and don t find (1) copy of PAN issued in name of Shri Krishna Gopal Gupta (2) copy of new issued in name of Shri Krishna Gopal Mathria (3) copy of ITR V for A.Y. 2010-11 and (4) ITR acknowledgement for A.Y. 2009-10. For sake of clarity assessee's submission made for ground no. 1 in ITA No. 238/11-12 is reproduced as under:- .1 That assessee had taken loan for property used for residence as well as for business. assessee had paid interest on housing loan at Rs. 2,68,518/- during relevant A.Y. 2009-10 howevr interest omitted to be claimed in return of income. During assessment proceedings fact was brought to notice of Assessing Officer and deduction of Rs. 2,65,518/- was claimed u/s 24(b). However, AO did not consider it. 2. That in A.Y. 2008-09 also assessee had omitted to claim deduction u/s 80C of principal amount of loan repaid to Bank in return of income. In appeal, Hon'ble CIT (A)-1, Jaipur considered claim of 4 ITA No. 640/JP/2015 Shri Krishna Gopal Mathuria vs. ACIT, Circle- 3, Jaipur . assessee and directed AO to allow claim u/s 80C of I.T. Act, 1961 (copy of appellate order enclosed) 3. That CBDT in Circular No. 14(XL-35) dated 11-04- 1995 (titled Administrative instructions for guidance of Income Tax Officers on matters pertaining to assessment) directed as under:- .Officer of Department xxxxxxxxxxxxx refund and relief. Hon'ble Bombay High Court in case of Dattatraya Gopal Shette vs. CIT (1984) 150 ITR 460 with reference to above circular made following observations. ..it is now well settled that even if xxxxxxxxxxx have been carried out .. 4. That certificate for GE Money dated 25-08-2011 of interest paid on Housing loan of Rs. 2,68,518/- for F.Y. 2008-09 is enclosed herewith . Ld. CIT(A)-1, Jaipur vide order dated 31-01-2014 has observed as under:- .. I have considered facts of case, it is seen that AO has not discussed this issue at all. It is however, noted that appellant has furnished certificate in name of one Shri Krishan Gopal Gupta. Moreover, there is nothing on record to show that said certificate pertains to appellant. Since no details have been furnished either at assessment stage or at appellate stage on this issue, I do not find any reason to interfere with order of AO. appeal on this ground, therefore, fails . After duty considering assessee's submission and also perusing case record, I do not find any mistake apparent from record. 5 ITA No. 640/JP/2015 Shri Krishna Gopal Mathuria vs. ACIT, Circle- 3, Jaipur . Accordingly, no further interference is required in appellate order already decided by my predecessor, then ld. CIT(A)-1, Jaipur. 4. In result, rectification application is dismissed. 2.3 ld. AR of assessee prayed for allowing claim of interest of Rs. 2,68,518/- paid on housing loan. 2.4 ld. DR relied on orders of lower authorities. 2.5 I have heard rival contentions and perused materials available on record. It is noted from record that assessee had made request for allowing claim of interest of Rs. 2,68,518/- paid on housing loan which is evident from para 9 of his application before ACIT, Circle- 3, Jaipur (supra). assessee has also submitted details regarding change in name of PAN which is evident from page 30 and 31 of paper book. At page 30, earlier name of assessee is mentioned as Krishan Gopal Gupta S/o Shri Badri Lal bearing PAN ACIPG 3989L which has now been modified bearing name of assessee as Krishna Gopal Mathuria S/o Shri Badri Lal Mathuria with PAN ACIPG 3989 L (page 31). Considering all these factual matrix, I find that there is merit in contention of assessee and Revenue should have allowed claim of assessee for payment of interest on 6 ITA No. 640/JP/2015 Shri Krishna Gopal Mathuria vs. ACIT, Circle- 3, Jaipur . housing loan. Therefore, I direct AO to allow claim of assessee. 3.0 In result, appeal of assessee is allowed Order pronounced in open court on 27 /09/2016. Sd/- (Bhagchand) Accountant Member Jaipur Dated:- 27 /09/ 2016 Copy of order forwarded to: 1. Appellant- Shri Krishna Gopal Mathuria 2. Respondent- ACIT, Circle- 3, Jaipur 3. CIT(A). 4. CIT, 5. DR, ITAT, Jaipur 6. Guard File (ITA No. 640/JP/2015) By order, Assistant. Registrar Krishna Gopal Mathuria v. ACIT Circle- 3 Jaipur