1985 (1) TMI 94

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....Rs. 6,498 which represents the interest payable on loans taken for the construction of the property. 2. The assessee is an individual. He is a member of a co-operative housing society. The society itself had arranged for loan for the construction of the apartment. The construction of the apartment was completed and sometime in September 1982 the society wrote to the assessee that the interest p....

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....eable under the head ' Income from house property ' shall, subject to the provisions of sub-section (2), be computed after making the following deductions, namely :--- (i) to (v) (vi) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital." It will be seen that where a property is bein....

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....ious year and for each of the four immediately succeeding previous years. In other words, according to Shri Joy, up to the assessment year 1983-84 there is no provision for the deduction of interest of the earlier years. It is only from this year that the claim would be allowable. 5. I am unable to accept the submission of the department. A plain reading of the section shows that the interest p....

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....interest would be liable to be paid by the member only on possession. Therefore, the claim made by the assessee has to be accepted. 6. The Explanation, which comes into force from 1-4-1984, would be applicable to different set of facts. Where an assessee takes a loan for construction of a property and as per contract with the financing agents interest accrues annually even before the constructi....