https://www.taxtmi.com/caselaws?id=8688 Interest on borrowings under the Agricultural Income-tax Act, 1950 remains deductible where the funds are shown to have been used for agricultural purposes under section 5(h) or for reclaiming, improving or cultivating the property under section 5(i). The Explanation excluding expenditure on cultivation, upkeep or maintenance of immature plants applies only when there is a definite and real link between the borrowed amount and such immature plants. On the record, no specific material showed that any borrowed funds were so spent, so the disallowance could not be sustained and the interest was treated as allowable. en-us Fri, 03 Mar 1972 00:00:00 +0530 Tue, 02 Jun 2009 19:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8688 Interest on borrowings under the Agricultural Income-tax Act, 1950 remains deductible where the funds are shown to have been used for agricultural purposes under section 5(h) or for reclaiming, improving or cultivating the property under section 5(i). The Explanation excluding expenditure on cultivation, upkeep or maintenance of immature plants applies only when there is a definite and real link between the borrowed amount and such immature plants. On the record, no specific material showed that any borrowed funds were so spent, so the disallowance could not be sustained and the interest was treated as allowable. Case-Laws Income Tax Fri, 03 Mar 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8688