1989 (10) TMI 102

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....ssessment year 1984-85. The appeal raises a very interesting issue. Fortunately for us there are certain facts which are not in dispute. The assessee constructed a house property. He had taken certain loans for that property. In the accounting year, some of those loans were repaid. Such repayments were made by taking other loans. For the latter loans taken for repaying the original loan, the rate ....

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.... assessee submits that on the facts as set out by us, the borrowings were only for construction of the property and, therefore, interest paid on the same should be allowed as a deduction in full. 4. The learned Departmental Representative placed emphasis on the wordings of the provisions of section 24(1)(vi) which read as under : "(vi) where the property has been acquired, constructed, repai....

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....cceptable or not. 6. This provision has been introduced to give a fillip to house construction. Where loans are genuinely taken, cases can well be envisaged where a person may tell the borrower that he is able to advance the loan only, say, for a period of six months or so. To illustrate further, Mr. 'X' may be having cash available with him which he can spare for six months to Mr. 'Y' who is c....