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The house property, A/1-5, Prithvi Apartments, the family residence of the Pathan family, is, in view of the rent agreements, both a self-occupied and a let out property. The interest claimed (Rs. 21.62 lakhs) isquathe entire property, which therefore cannot be allowed in full against the rental income, which isquaa part of the house property. The assessee's interest claim therefore cannot be allowed in full and shall have to be suitable proportioned, even as agreed to by Sh. Mehta, restricting the interest claim relatable to the self occupied part thereof to, as allowed, Rs. 1.50 lakhs. The assessee shall provide a reasonable basis for such allocation as well as the working of the area let. We say so as it may well, in view of the joint residence, be that no area (portion) is specified in the rent agreements. The number of family members living jointly; their living requirements - which may not be uniform; fair rental value of the property, etc., are some of the parameters which could be considered for the purpose. The AO shall adjudicate thereon per a speaking order, giving definite reasons for being in disagreement, where so, in whole or in part, with the assessee's working, within a reasonable time. We decide accordingly.

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Section 24(b) of Income Tax Act, 1961 House Property Income --- The assessee has claimed a loss qua the said property on account of interest (on borrowed capital) adjusting it against the rental income.The said rent was, on the basis of a field enquiry by the Assessing Officer (AO), found to be from the assessee's major son, and major daughter, residing thereat along with the assessee's other family members. Nobody would, in the view of the AO, charge rent (for residence) from his own son and daughter, particularly considering that both are unmarried and living together with their family at its' self-owned abode.

Treating the house property as a self-occupied property, the AO restricted the claim of interest u/s. 24(b) to Rs. 1,50,000, and which was confirmed by the CIT(A) in appeal.
Tribunal held that in view of the joint residence, be that no area (portion) is specified in the rent agreements. The number of family members living jointly; their living requirements - which may not be uniform; fair rental value of the property, etc., are some of the parameters which could be considered for the purpose. The AO shall adjudicate thereon per a speaking order, giving definite reasons for being in disagreement, where so, in whole or in part, with the assessee's working, within a reasonable time, Therefore, decide accordingly, the assessee's appeal was partly allowed --- HUSSAIN HABIB PATHAN vs. ASSTT. CIT.[2020] 23 ITCD Online 139 (MUM)