Interest on loan taken against FDRs held allowable as it was incurred exclusively to keep intact income from FDRs

In order to protect interest earnings from fixed deposits and to meet her financial needs, when an assessee raises a loan against the fixed deposits, so as to keep the source of earning intact, the expenditure so incurred in wholly and exclusively to earn fixed deposit interest income has to be allowed as deduction

Once the assessee claims that the actual market value of the land or building is less than stamp duty valuation adopted by the authorities, it is incumbent upon the Assessing Officer to refer the valuation of said land of building to the Departmental Valuation Officer

Refer:[2014] 47 taxmann.com 88 (Agra - Trib.)

IN THE ITAT AGRA BENCH

Raj Kumari Agarwal

v.

Deputy Commissioner of Income-tax, Circle -2, Agra