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Disallowance under wrong section of income tax act


24 April 2017 The A.O had disallowed Interest expenditure claimed by the Assessee against Income from House property by invoking provisions of Section 36(1)(iii) of the Act instead of Section 24(b), giving reasons that the Assessee had sufficient borrowed funds and given them on loan without charging interest Is this treatment valid in law?? If not please quote case laws in support of the same

24 April 2017 Not valid in law because house property income has to be determined by applying section 22 to 27 only.

24 April 2017 Can you please quote case laws where the A.O has invoked wrong section and the appellate authority has deleted the addition on that ground


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