https://www.taxtmi.com/caselaws?id=19325 Interest debited and capitalised in an overdraft or cash credit account is not automatically "interest paid" for deduction under section 5(e) or 5(f) of the Agricultural Income-tax Act, 1950. Deduction under clause (e) is confined to interest paid on borrowed amounts actually applied to capital expenditure for the benefit of the land, while clause (f) applies only to interest paid on a mortgage or capital charge. Where the facility is fully drawn and the interest is capitalised beyond the sanctioned limit, the entry merely increases liability and does not amount to payment. Only an undrawn balance within the facility may support a notional payment treatment. en-us Wed, 23 Nov 1994 00:00:00 +0530 Thu, 05 Nov 2009 13:46:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19325 Interest debited and capitalised in an overdraft or cash credit account is not automatically "interest paid" for deduction under section 5(e) or 5(f) of the Agricultural Income-tax Act, 1950. Deduction under clause (e) is confined to interest paid on borrowed amounts actually applied to capital expenditure for the benefit of the land, while clause (f) applies only to interest paid on a mortgage or capital charge. Where the facility is fully drawn and the interest is capitalised beyond the sanctioned limit, the entry merely increases liability and does not amount to payment. Only an undrawn balance within the facility may support a notional payment treatment. Case-Laws Income Tax Wed, 23 Nov 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19325