1997 (9) TMI 11

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....The assessee has come up in revision against the order of the Tribunal which has disallowed the assessee's claim for deduction of the amount paid by it as interest except to the extent to which bid been allowed by the Assessing Officer. The assessment years in question are 1983-84 and 1984-85. The assessee has claimed deduction of a sum of Rs. 8,75,159 as the amount of interest paid by it durin....

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....ified in section 5(k) and the expenditure incurred from out of such borrowings in earlier years, are also required to be considered under section 5(k) whenever deduction is claimed for the amount of interest paid in the previous year in respect of such old borrowings that remained unpaid. The Tribunal has rightly held that the interest paid on the borrowings for the purposes specified in section 5....

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.... in the previous year or in the earlier years can only be claimed under section 5(k) subject to the ceiling mentioned therein. However, replanting loans obtained by the assessee for the purpose of replanting a part of the estate cannot be said to fall under section 5(k). Interest paid on the replanting loan has therefore to be considered under section 5(e). The assessee is entitled to that benefit....