https://www.taxtmi.com/caselaws?id=39647 Interest deduction for house property is available only where there is a real borrowing and a clear nexus between that borrowed capital and the acquisition, construction, repair, renewal or reconstruction of the property. On the facts stated, members' deposits were treated as security deposits retained for performance of obligations, not borrowed capital in a true lender-borrower sense, and the later takeover of assets and liabilities by the company did not convert them into borrowed money. The house property was therefore not shown to have been acquired with borrowed capital, and the statutory conditions for deduction of interest under the cited provisions were not satisfied. en-us Thu, 31 Jan 1974 00:00:00 +0530 Mon, 19 Apr 2010 14:08:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39647 Interest deduction for house property is available only where there is a real borrowing and a clear nexus between that borrowed capital and the acquisition, construction, repair, renewal or reconstruction of the property. On the facts stated, members' deposits were treated as security deposits retained for performance of obligations, not borrowed capital in a true lender-borrower sense, and the later takeover of assets and liabilities by the company did not convert them into borrowed money. The house property was therefore not shown to have been acquired with borrowed capital, and the statutory conditions for deduction of interest under the cited provisions were not satisfied. Case-Laws Income Tax Thu, 31 Jan 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39647