https://www.taxtmi.com/caselaws?id=800318 Interest on refinanced borrowings qualifies for deduction under Section 24(b) where the original borrowing funded construction of let-out house property and a direct, verified nexus between the original loan and refinancing is established. Consistent treatment in earlier assessments supports the claim unless the use or nature of funds has changed. Section 14A disallowance cannot apply where no exempt income was earned, notwithstanding investments capable of generating such income. Interest attributable to borrowings used for investment may be capitalised if the actual deployment of funds and related interest allocation are verified. en-us Mon, 07 Sep 2026 00:00:00 +0530 Mon, 05 Oct 2026 08:13:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800318 Interest on refinanced borrowings qualifies for deduction under Section 24(b) where the original borrowing funded construction of let-out house property and a direct, verified nexus between the original loan and refinancing is established. Consistent treatment in earlier assessments supports the claim unless the use or nature of funds has changed. Section 14A disallowance cannot apply where no exempt income was earned, notwithstanding investments capable of generating such income. Interest attributable to borrowings used for investment may be capitalised if the actual deployment of funds and related interest allocation are verified. Case-Laws Income Tax Mon, 07 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800318