CIT vs. Hariprasad Bhojnagarwala (Gujarat High Court – Full Bench)

S. 23(2): A HUF is “owner occupying house for own residence”

The assessee, a Hindu Undivided Family (HUF), claimed deduction u/s 23(2). The AO & CIT (A) took the view the view that as s. 23(2) applied to “a house or part of a house in the occupation of the owner for the purposes of his own residence“, a HUF was not eligible. The Tribunal took a contrary view and allowed the assessee’s claim. In view of the apparent conflict amongst various High Courts, the matter was referred to a Full Bench: