https://www.taxtmi.com/caselaws?id=58579 The tribunal upheld the allowance of the deduction for interest payable on loans taken for property construction. It ruled that the deduction should be accepted based on the timing of the liability, emphasizing that interest payable during the accounting year in which the liability arises is deductible. The tribunal rejected the department's argument that interest from prior years was not deductible, stating that the plain reading of the relevant section permits the deduction. Additionally, it clarified that the Explanation introduced in 1984 applies to scenarios where interest accrues before property completion, allowing deductions in subsequent years following completion and possession. en-us Thu, 24 Jan 1985 00:00:00 +0530 Mon, 20 Dec 2010 17:03:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58579 The tribunal upheld the allowance of the deduction for interest payable on loans taken for property construction. It ruled that the deduction should be accepted based on the timing of the liability, emphasizing that interest payable during the accounting year in which the liability arises is deductible. The tribunal rejected the department's argument that interest from prior years was not deductible, stating that the plain reading of the relevant section permits the deduction. Additionally, it clarified that the Explanation introduced in 1984 applies to scenarios where interest accrues before property completion, allowing deductions in subsequent years following completion and possession. Case-Laws Income Tax Thu, 24 Jan 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58579