https://www.taxtmi.com/caselaws?id=11086 The High Court ruled in favor of the Revenue, determining that the interest payment made by the appellant was not deductible under section 24(1)(vi) of the Income-tax Act, 1961. The court found that the advance payment received was not utilized as borrowed capital for flat construction, and the interest payment was considered a penalty or liquidated damages for the failure to deliver the flat on time. Therefore, the deduction claimed by the appellant was deemed impermissible, affirming the decisions of the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal. Judge S.K. Gupta concurred with this outcome. en-us Mon, 24 Nov 2003 00:00:00 +0530 Thu, 30 Jul 2009 18:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11086 The High Court ruled in favor of the Revenue, determining that the interest payment made by the appellant was not deductible under section 24(1)(vi) of the Income-tax Act, 1961. The court found that the advance payment received was not utilized as borrowed capital for flat construction, and the interest payment was considered a penalty or liquidated damages for the failure to deliver the flat on time. Therefore, the deduction claimed by the appellant was deemed impermissible, affirming the decisions of the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal. Judge S.K. Gupta concurred with this outcome. Case-Laws Income Tax Mon, 24 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11086