House property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2014 Hello,

My client purchase a resale flat which was merge in one flat from two different flat.
Registration of both the flat are separate,Municipal tax ,Share Certificate and society monthly charges is on different flat numbers from the previous owner.
One flat is 1000 sqft and other is 600 sqft merge in 1600sqft.
AY 2010-11 ,deputy CIT treated the case under
two house i.e.one is self occupied and other one is deemed to be let out.
So he grant Rs.150000 deduction on loan interest as self occupied and other flat shown as deemed to let out on Rs.125000 notional rent.

From AY2011-12 ,Addl CIT treated this house in one house and ask only for one deduction in interest on loan.
But as per the all evidence this flats are two different flats which registration are also different.
Addl.CIT to refuse ,deduction on second house as deemed to be let out.

Here Income Tax People have two different opinion.
Kindly guide me for suitable suggestion.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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12 January 2014 First you should try to understand the difference between house and unit. In case of house every thing should be different it can be in one building or a separate building but in case of units it cannot be independent house.

So, you have purchased two units which is consisting of 2 flats which were joined and it amounts to only one flat.

Now, you can proceed accordingly.

If we go by the definition as per income tax act then it is house not unit.,

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