ITAT Pune: Vinayak Hanumantrao Ghorpade Vs Vaishnavi Satish Bankar

The Income Tax Appellate Tribunal (ITAT), Pune Bench, has delivered a significant ruling emphasizing the necessity of specific documentary evidence when claiming deductions for housing loans. In the case of Vinayak Hanumantrao Ghorpade Vs Vaishnavi Satish Bankar, the Tribunal upheld the disallowance of interest and principal repayment deductions because the assessee failed to produce a loan sanction letter or a specific bank certificate proving the loan was utilized for housing purposes.

However, the Tribunal provided relief on other grounds, remanding issues related to GST payments under Section 43B and unsecured loans under Section 68 back to the Assessing Officer (AO) for re-verification.

Factual Background

The assessee was subject to a search action under Section 132 of the Income Tax Act, 1961. Consequently, notices were issued under Section 153A. For the Assessment Year 2019-20, the AO passed an order assessing the total income at Rs. 1,57,56,610/-, significantly higher than the returned income of Rs. 38,22,450/-.

The assessee challenged various additions made by the AO before the Commissioner of Income Tax (Appeals) [CIT(A)], and subsequently, before the ITAT. The appeal covered multiple issues ranging from housing loan deductions to unexplained cash credits.

Key Issues and Tribunal Rulings

1. Housing Loan Deductions: Section 24(b) and Section 80C

The assessee claimed a deduction of Rs. 55,292/- for interest on a housing loan under Section 24(b) and Rs. 1,50,000/- for principal repayment under Section 80C.